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Department of International Law > OAS

Secured Transactions - October 2013

El Salvador Agrees to Become Primary Beneficiary in OAS Secured Financing Project

The Department of International Law welcomes the recently announced commitment of El Salvador to participate in the OAS Secured Financing Project as a primary beneficiary country.

As a major step toward developing a modern and effective secured transactions system, in September 2013, El Salvador’s Legislative Assembly (Asamblea Legislativa de El Salvador) enacted a secured transactions law (Ley de Garantías Mobiliarias) that was prepared on the basis of the Model Inter-American Law on Secured Transactions and other international instruments.

Emphasizing the importance of capacity building, the Department will work together with the Salvadoran authorities and other key stakeholders to help ensure that implementation and ongoing reform efforts are consistent with the recently enacted legislation, to raise awareness about the law’s features, uses and benefits, and to gain broad-based support for the newly introduced secured transactions system.

These efforts over the forthcoming months will translate into an initial set of draft recommendations for consideration at a seminar to be held in San Salvador in April 2014. Not only will the seminar provide an opportunity for discussion among a wide range of local stakeholders, it will also include participation of international experts and representatives of other OAS Member States that are considering or have already undergone their own secured transactions law reform (secondary beneficiary countries). Key among the considerations will be how to promote strong institutions to address the continuing challenges facing micro, small and medium enterprises to deal effectively with their modern-day secured financing needs, such as greater access to equitable credit and a coordinated policy and legal infrastructure.

By using a participatory process, the Department will tailor the project to meet El Salvador’s unique circumstances and needs, draw on the region’s success stories and cooperate more closely with local and international stakeholders—all with the goal of making credit more equitable and accessible to those who need it most.

The OAS Secured Financing Project is made possible through funding from the Government of Canada.

To see OAS Booklet — Secured Transactions Reform in the Americas, click here »

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