On March 20th, 2020, the Legislative Assembly of El Salvador approved the Legislative Decree No. 601 which establishes some economic measures to be implemented to combat the effects of the COVID-19 pandemic in our country.

Decree No. 601 includes the following measures:

  • Defer payment of bills for drinking water services.
  • Defer payment of the electric power bill. (Does not include payment of municipal taxes).

In the case of natural persons, the benefit will only apply if the energy bill has a consumption of up to 200/ Kwh.

  • Defer payment of telecommunications bills for 3 months.

The measures will apply to service invoices for the months of March, April and May of this year, which will be cancelled within a period of up to 24 months, in level quotas starting from June of this year.

 The value of the invoice for the services that are deferred shall not be subject to surcharges for any late payment, interest or other penalty.

These measures shall apply only and exclusively to natural and legal entities directly affected by the effects of the COVID-19 virus. For example, companies that have decreased their income from partial or total closures or natural persons who have been in quarantine in shelters in the country.

The Ministry of Economy along with the Ministry of Finance, will be responsible for developing the relevant administrative provisions for the implementation of Decree No° 601.

The Ministry of Finance representing the Government of El Salvador or the Central Reserve Bank (BCR) in its capacity as Financial Agent may provide a guarantee in favor of a Financial Institution or group of banks to constitute a Bridge Funding, in order not to affect providers of basic water, electricity and telecommunications services.

This decree entered into force on March 20th, 2020.

For more information and legal assistance in this matter, please contact us through the following channels fmartinez@romeropineda.com; Info@romeropineda.com; tel. 2505555 or for emergencies 77299977

We’ll be glad to assist you.


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