The measure will be applied throughout May, as an option to provide some relief to Salvadorans abroad who wish to help their families in El Salvador.
Salvadorans abroad who send remittances to the country they will not have to pay any extra charge, of charges for transfers, when making the transaction, announced this morning the presidential commissioner, Carolina Recinos.
Economic cabinet authorities said the measure will be in force throughout May, as an alternative to help Salvadorans abroad.
They reported that during 2019, remittances represented approximately 20% of El Salvador’s GDP.
When a person makes a shipment to El Salvador, depending on the amount, the company may charge up to $ 8 or more for each shipment.
María Luisa Hayem, Minister of Economy, said that in total the expected savings from this measure exceeds $ 10 million.
Recinos said that they reached an agreement with different companies that provide this service. Among these are:
– Vigo from Western Union. To apply at zero cost, shipping can be done with payment from Vigo to a bank account or at locations of Vigo agents in El Salvador.
– Viamericas. It can be done from shipment by authorized agents in the United States to a bank account in El Salvador or an online shipment with payment available in a bank account or agencies in El Salvador.
– Through Ria you can make the deposit from anywhere in the world with an available payment to El Salvador bank accounts allied to Ria.
– MoneyGram also has different modalities available.
Authorities said they were aware of the difficulties facing the Salvadoran population abroad due to the impact on the labor market caused by the pandemic.
“If remittances fall, consumption falls, VAT falls, yes there would be negative repercussions. Hopefully this measure will help to reduce the decrease in remittances ”, said the Minister of Finance, Nelson Fuentes.
More than 80% of taxpayers have already filed their income tax return
Sources reported that as of April 30, 489,312 statements had already been submitted to the Ministry of Finance, out of a total of 573,000 expected. In other words, the current advance is 85.4%. In addition, it reported that 94.2% of those who have declared have been natural persons.