The program will contribute to the stability and solvency of El Salvador's financial system by strengthening the supervisory agencies for the financial sector. It will improve the capacity of the participating agencies individually, while at the same time encouraging and facilitating coordination, cooperation, and the smooth flow of information between them. The participating agencies are the Financial System Superintendency, the Deposit Insurance Institution, the Securities Exchange Superintendency, the Pension Superintendency, and the National Council of Judges through the School for Judicial Training. MIF resources will fund the following components: a) implementation of a planning and monitoring/control system to enable the superintendencies to manage their resources efficiently; b) human resource management; c) strengthening of management of the technological platform, permitting economies of scale in the selection, purchase and installation of information systems and the standardization of hardware, operational systems, and database software; d) implementation of international accounting principles in the financial sector; e) a training program for judges and commercial arbitrators; f) establishment of the Deposit Insurance Institution, through support to the Central Reserve Bank of El Salvador, including the development of regulations, organizational structures, procedures and manuals, and specialized advisory services; g) strengthening of the Financial System Superintendency, including bank supervision, supervision of non-bank intermediaries, supervision of insurance companies, and creation of a financial crimes investigation unit; h) strengthening of the Securities Exchange Superintendency, particularly with respect to accounting standards for issuers, regulation and supervision of investment funds, prospectuses for securities issues and public offerings, asset securitization, classification of financial crimes, regulation of the securities market, and book-entry system operation and clearing houses; and i) strengthening of the Pension Superintendency in the areas of new investment alternatives, evaluation of aspects of the pension saving system, and supervision of investments. The program will also fund the strengthening of technology management, through development of a short- and medium-term technology strategy and investment plan for the three superintendencies.
February 24, 1999
REFORM / MODERNIZATION OF THE STATE
PUBLIC EXPENDITURE MANAGEMENT
Instrumento del Fondo Multilateral de Inversiones
Lending Instrument Code
Country Counterpart Financing
Original Amount Approved