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60
Investment & Legal Framework
Direct Foreing Investment by Country of Origin
Figures in Million of $US and their percentages
Source: Central Reserve Bank based on Private Sector
and Bank Balance surveys.
By sectors there has been a sharp rise in the area
of Telecommunications, commercial distribution and
the agro-food industry, and, of course the financial
sector which is now completely internationalized.
Investment Legislation
As mentioned at the beginning, the government of
El Salvador has adopted an economic regulatory
framework that allows freedom of enterprise and
freedom of investment. There are no government
controls over interest rates, exchange rates or
repatriation of capital and profits. Investors are not
required by the investment regulation to export
specific amounts, transfer technology, incorporate
fixed levels of local content or comply with other
performance criteria.
All sectors are open to foreign investment with no
participation limit except that stated within the law
of commerce, industry and small service assistance
Quarter or Year-End Balance
Annual Growth
Transactions
2005
2006 2007 2008
IV
2008
IV
2009
IV
2010
1 United States
2 Panamá
3 México
4 The Virgin Islands
5 Spain
6 Canada
7 Costa Rica
8 Guatemala
9 Germany
10 The Bahamas
11 Italy
12 Taiwan
13 Singapur
14 Holland
15 Nicaragua
16 South Korea
17 Honduras
18 Japan
19 Switzerland
20 Aruba
21 Brazil
22 Bermudas
23 England
24 France
25 Israel
26 Peru
27 Chile
28 Ecuador
29 Venezuela
30 Other
31 Subtotal
32 Foreign Investment
Loans between
Companies
33 Total
1358.9 1371.8 1870.9 1999.8 1999.8 2073.4
3.7
144.5 212.3 1053.5 1374.0 1374.0 1454.3
5.8
647.8 655.0 714.4 722.0 722.0 723.9
0.3
356.2 355.9 356.6 361.8 361.8 367.1
1.5
195.2 195.3 205.4 205.9 205.9 207.8
0.9
130.3 145.3 153.6 162.4 162.4 176.5
8.7
67.4
70.1 104.2 111.2 111.2 119.0
7.1
70.4
93.4 96.3 102.4 102.4 110.4
7.9
89.4
92.2 93.6
98.6
98.6 101.6
3.1
68.6
74.9 75.2
75.2
75.2
75.2
0.0
26.6
74.0 74.0 105.9 105.9 105.9
0.0
58.6
58.3 58.3
59.0
59.0
61.4
4.0
36.5
37.3 45.0
45.0
45.0
96.3 114.0
55.0
56.3 42.0
43.3
43.3
47.5
9.8
21.3
27.8 35.5
45.5
45.5
61.5
35.1
26.0
22.0 30.0
25.1
25.1
28.5
13.5
21.6
21.8 22.0
22.5
22.5
19.0
-15.8
14.2
14.2 18.7
17.5
17.5
17.5
0.0
16.8
16.8 16.8
18.5
18.5
19.0
2.9
15.0
15.0 15.0
15.0
15.0
15.0
0.0
0.0
4.3 13.7
22.7
22.7
23.4
2.8
12.3
13.3 13.3
13.3
13.3
13.3
0.1
8.2
9.7 12.7
13.1
13.1
27.6 110.6
5.8
6.0
4.5
4.5
4.5
11.7 161.5
1.0
1.5
2.5
2.5
2.5
2.5
0.0
22.3
22.3
1.8
1.8
1.8
1.8
0.0
0.3
24.8
0.8
0.7
0.7
0.7
11.9
9.0
9.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
-.-
29.4
34.2 52.0
52.0
52.0
52.8
1.4
3508.1 3735.0 5182.5 5721.5 5721.5 6015.0
5.1
658.4 672.7 733.7 979.8 979.8 1117.0
14.0
4166.5 4407.8 5916.3 6701.4 6701.4 7132.1
6.4