LatinNews Daily - 06 May 2020

* El Salvador’s 84-member unicameral legislature has approved a US$1bn rescue package for companies affected by the containment measures implemented to stop the spread of coronavirus (Covid-19). The package will focus in particular on the small and medium-sized enterprise (SME) sector. The legislative assembly has authorised the executive to issue bonds up to that amount, or else to fund it either partly or entirely through loans. Of the US$1bn, US$600m will be used to set up a trust to promote the economic recovery of the SME sector, with the state-run development bank, Banco de Desarrollo de El Salvador (Bandesal), to serve as the fiduciary. The other US$400m will be used to support the state budget, with US$300m to go on payments owed to private sector providers to the state, and the rest on funds for exporters who are now entitled to tax relief, among other things. Also yesterday, President Nayib Bukele announced plans to distribute 2.7m food parcels to those affected by the suspension of economic activity. This follows other measures announced for the most vulnerable sectors, such as a US$300 bonus for the poorest 1.5m families.

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