Obbligazione Salvadoria 7.1246% ( USP01012CA29 ) in USD

Emittente Salvadoria
Prezzo di mercato refresh price now   100 USD  ▲ 
Paese  El Salvador
Codice isin  USP01012CA29 ( in USD )
Tasso d'interesse 7.1246% per anno ( pagato 2 volte l'anno)
Scadenza 20/01/2050



Prospetto opuscolo dell'obbligazione El Salvador USP01012CA29 en USD 7.1246%, scadenza 20/01/2050


Importo minimo 150 000 USD
Importo totale 1 097 000 000 USD
Cusip P01012CA2
Coupon successivo 20/01/2026 ( In 76 giorni )
Descrizione dettagliata El Salvador è una repubblica presidenziale dell'America Centrale, caratterizzata da una storia complessa, un'economia in via di sviluppo e una significativa presenza di gang criminali.

The Obbligazione issued by Salvadoria ( El Salvador ) , in USD, with the ISIN code USP01012CA29, pays a coupon of 7.1246% per year.
The coupons are paid 2 times per year and the Obbligazione maturity is 20/01/2050










OFFERING CIRCULAR





















The Republic of El Salvador

US$1,097,000,000
7.1246% Notes due 2050

The Republic of El Salvador (the "Republic" or "El Salvador") is offering US$1,097,000,000 aggregate principal amount of its
7.1246% Notes due 2050 (the "2050 Notes"). Interest on the Notes will be payable semi-annually in arrears on January 20 and July 20 of
each year commencing on January 20, 2020. The Notes will mature on January 20, 2050. This Offering Circular constitutes a prospectus
for the purpose of Part IV of the Luxembourg law on prospectus securities dated July 16, 2019.

The Notes will contain "collective action clauses". Under these provisions, which differ from the terms of the Republic's
Public External Indebtedness issued prior to February 28, 2017, the Republic may amend the payment provisions of the Notes and other
reserved matters listed in the indenture with the consent of the holders of: (1) with respect to a single series of notes, more than 75% of
the aggregate principal amount of the outstanding notes of such series; (2) with respect to two or more series of notes, if certain
"uniformly applicable" requirements are met, more than 75% of the aggregate principal amount of the outstanding notes of all series
affected by the proposed modification, taken in the aggregate; or (3) with respect to two or more series of notes, more than 66 2/3% of
the aggregate principal amount of the outstanding notes of all series affected by the proposed modification, taken in the aggregate, and
more than 50% of the aggregate principal amount of the notes of each series affected by the proposed modification, taken individually.

Except as described herein, payments on the Notes will be made without deduction for or on account of withholding taxes imposed
by the Republic. Application has been made to list the Notes on the Official List of the Luxembourg Stock Exchange and to have the Notes
admitted to trading on the Euro MTF Market. Application will also be made to list the Notes on the El Salvador Stock Exchange.
See "Risk Factors" beginning on page 12 regarding certain risk factors you should consider before investing in the Notes.
Price: 100.000%
plus accrued interest, if any, from August 6, 2019.
Delivery of the Notes will be made on or about August 6, 2019.
The Notes have not been and will not be registered under the Securities Act of 1933, as amended (the "Securities Act"). The
Notes may not be offered or sold within the United States or to U.S. persons except to qualified institutional buyers in reliance on the
exemption from registration provided by Rule 144A under the Securities Act and to certain persons in offshore transactions in reliance on
Regulation S under the Securities Act. You are hereby notified that sellers of the Notes may be relying on the exemption from the
provisions of Section 5 of the Securities Act provided by Rule 144A under the Securities Act.
Joint Book-Running Managers



Citigroup
Scotiabank

The date of this Offering Circular is July 30, 2019.












TABLE OF CONTENTS
Page
PRESENTATION OF INFORMATION ................................................................................................................................................ iii
FORWARD-LOOKING STATEMENTS ............................................................................................................................................... iii
ARBITRATION AND ENFORCEABILITY ......................................................................................................................................... iv
SUMMARY ............................................................................................................................................................................................. 1
SELECTED ECONOMIC INDICATORS .............................................................................................................................................. 6
THE OFFERING ..................................................................................................................................................................................... 8
RISK FACTORS .................................................................................................................................................................................... 12
THE REPUBLIC OF EL SALVADOR ................................................................................................................................................. 19
THE SALVADORAN ECONOMY ...................................................................................................................................................... 24
FOREIGN TRADE AND BALANCE OF PAYMENTS ...................................................................................................................... 48
MONETARY SYSTEM ........................................................................................................................................................................ 59
PUBLIC SECTOR FINANCES ............................................................................................................................................................. 65
PUBLIC DEBT ...................................................................................................................................................................................... 75
DESCRIPTION OF THE NOTES ......................................................................................................................................................... 80
PLAN OF DISTRIBUTION .................................................................................................................................................................. 92
BOOK-ENTRY SETTLEMENT AND CLEARANCE ......................................................................................................................... 98
TRANSFER RESTRICTIONS ............................................................................................................................................................ 100
TAXATION ......................................................................................................................................................................................... 102
VALIDITY OF THE NOTES .............................................................................................................................................................. 106
GENERAL INFORMATION .............................................................................................................................................................. 107







IN MAKING AN INVESTMENT DECISION, INVESTORS MUST RELY ON THEIR OWN EXAMINATION OF
THE REPUBLIC AND THE TERMS OF THE OFFERING, INCLUDING THE MERITS AND THE RISKS INVOLVED.

You should rely only on the information contained in this Offering Circular or to which we have referred you. We
have not, and the Joint Book-Running Managers have not, authorized anyone to provide you with information that is
different from the information contained in this Offering Circular. This Offering Circular may only be used where it is legal
to sell these securities. The information in this Offering Circular may only be accurate on the date of this Offering
Circular.

ANY OFFER OR SALE OF NOTES IN ANY MEMBER STATE OF THE EUROPEAN ECONOMIC AREA WHICH HAS
IMPLEMENTED PROSPECTUS REGULATION 2017/1129 (THE "PROSPECTUS REGULATION") MUST BE ADDRESSED
TO QUALIFIED INVESTORS (AS DFINED IN THE PROSPECTUS REGULATION).

This Offering Circular may only be used for the purposes for which it has been published.
The Notes will be direct, general and unconditional, unsubordinated and unsecured obligations of the Republic. The Notes
rank and will rank without any preference among themselves and equally with all other unsecured and unsubordinated Public External
Indebtedness (as defined under "Description of the Notes--Definitions") of the Republic. It is understood that this provision shall not
be construed so as to require the Republic to make payments under the Notes ratably with payments being made under any other Public
External Indebtedness. The Republic has pledged its full faith and credit for the due and punctual payment of all amounts due in respect
of the Notes.

The Notes will be issued in registered form only. Notes sold in offshore transactions in reliance on Regulation S under
the Securities Act ("Regulation S") will be represented by one or more permanent global notes in fully registered form without interest
coupons (the "Regulation S Global Note") deposited with a custodian for, and registered in the name of a nominee of, The Depository
Trust Company ("DTC") for the respective accounts at DTC as such subscribers may direct. Notes sold in the United States to
qualified institutional buyers (each a "qualified institutional buyer") as defined in, and in reliance on, Rule 144A under the Securities
Act ("Rule 144A") will be represented by one or more permanent global notes in fully registered form without interest coupons (the
"Restricted Global Note" and, together with the Regulation S Global Note, the "Global Notes") deposited with a custodian for, and
registered in the name of a nominee of, DTC for the respective accounts at DTC as such subscribers may direct. Beneficial interests
of DTC participants (as defined under "Book-Entry Settlement and Clearance") in the Global Notes will be shown on, and transfers
thereof between DTC participants will be effected only through, records maintained by DTC and its direct and indirect participants,
including Euroclear Bank S.A./N.V., as operator of the Euroclear System ("Euroclear") and Clearstream Banking, société anonyme
("Clearstream, Luxembourg"), if applicable. See "Book-Entry Settlement and Clearance". Except as described herein, definitive
Notes will not be issued in exchange for beneficial interests in the Global Notes. See "Description of the Notes -- Form,
Denomination and Title". For restrictions on transfer applicable to the Notes, see "Transfer Restrictions" and "Subscription and
Sale".
The Republic has taken reasonable care to ensure that the information contained in this Offering Circular is true and correct
in all material respects and not misleading as of the date hereof, and that, to the best of the knowledge and belief of the Republic,
there has been no omission of information which, in the context of the issue of the Notes, would make this Offering Circular as a
whole or any such information misleading in any material respect. The Republic accepts responsibility accordingly.

This Offering Circular does not constitute an offer by, or an invitation by or on behalf of, the Republic or the Joint
Book-Running Managers to subscribe for or purchase any of the Notes. Each recipient shall be deemed to have made its own
investigation and appraisal of the financial condition of the Republic. The distribution of this Offering Circular or any part of it and
the offering, possession, sale and delivery of the Notes in certain jurisdictions may be restricted by law. Persons into whose possession
this Offering Circular comes are required by the Republic and the Joint Book-Running Managers to inform themselves about and
to observe any such restrictions. See "Transfer Restrictions" and "Subscription and Sale" for a description of further restrictions on
the offer, sale and delivery of Notes and on distribution of this Offering Circular and other offering material relating to the Notes.

Each person purchasing Notes pursuant to Rule 144A will be deemed to:

represent that it is purchasing the Notes for its own account or an account with respect to which it exercises sole
investment discretion and that it or such account is a qualified institutional buyer (as defined in Rule 144A); and

acknowledge that the Notes have not been and will not be registered under the Securities Act or any State securities laws
and may not be reoffered, resold, pledged or otherwise transferred except as described under "Transfer Restrictions".

Each purchaser of Notes sold outside the United States in reliance on Regulation S will be deemed to have represented that it

i



is not purchasing Notes with a view to distribution thereof in the United States. Each person purchasing Notes also acknowledges
that:

it has been afforded an opportunity to request from the Republic and to review, and it has received, all additional
information considered by it to be necessary to verify the accuracy of the information herein;

it has not relied on the Joint Book-Running Managers or any person affiliated with the Joint Book-Running Managers in
connection with its investigation of the accuracy of the information contained in this Offering Circular or its investment
decision; and

no person has been authorized to give any information or to make any representation concerning the Republic or
the Notes other than those contained in this Offering Circular and, if given or made, such information or
representation should not be relied upon as having been authorized by the Republic or the Joint Book-Running Managers.

ii



IN CONNECTION WITH THIS ISSUANCE OF THE NOTES, EACH JOINT BOOK-RUNNING MANAGER AND
JOINT BOOKRUNNER MAY, ITSELF OR THROUGH ITS AFFILIATES, OVERALLOT OR EFFECT TRANSACTIONS
WHICH STABILIZE OR MAINTAIN THE MARKET PRICE OF THE NOTES AT A LEVEL WHICH MIGHT NOT
OTHERWISE PREVAIL IN THE OPEN MARKET, TO THE EXTENT PERMITTED BY APPLICABLE LAWS. SUCH
STABILIZING, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME.

PRESENTATION OF INFORMATION

Unless otherwise specified or the context requires, references to "US dollars", "$" and "US$" are to United States dollars,
references to the "colón", "colones" and "¢" are to Salvadoran colones, and references to "euros" and "" are to Euros.

References to the "Republic" and "El Salvador" are to the Republic of El Salvador.
References to "FOB" are to exports free on board and to "CIF" are to imports including cost, insurance and freight charges.
Data identified as "preliminary" in the tables included in this Offering Circular reflects an interim calculation and are subject
to change.

References to "maquila" are to the assembly of imported goods for re-export.

References to "Central America" and "Central American countries" are to El Salvador, Costa Rica, Guatemala, Honduras and
Nicaragua.

Certain economic and financial data in this Offering Circular are derived from information previously published by Banco
Central de Reserva de El Salvador (the "Central Bank") and other Governmental entities of El Salvador. These data are subject to
updates and change in subsequent publications. As of March 2018, the Central Bank updated the base year of the National Account
Statistics from 1990 to 2005 and adopted the main recommendations of the United Nations System of National Accounts ("SNA2008").
The disclosure of the SNA2008 figures for El Salvador will be made public subject to the dissemination process of the Government.

Certain other information in this Offering Circular is derived from information made publicly available by the United Nations,
the International Monetary Fund and the World Bank.

References to "net international reserves" are to foreign currency reserves. The term "current account surplus (deficit)"
as applied to the balance of payments includes foreign aid, unless otherwise specified.

Certain amounts included in this Offering Circular have been subject to rounding adjustments; accordingly, figures shown as
totals in certain tables may not be an arithmetic aggregation of the figures which precede them.

FORWARD-LOOKING STATEMENTS

This Offering Circular contains certain forward-looking statements (as such term is defined in the Securities Act) concerning
the Republic. These statements are based upon beliefs of certain Government officials and others as well as a number of assumptions
and estimates which are inherently subject to significant uncertainties, many of which are beyond the control of the Republic. Future
events may differ materially from those expressed or implied by such forward-looking statements. Such forward- looking statements
are principally contained in the sections "Offering Circular Summary", "The Republic of El Salvador", "The Salvadoran Economy",
"Foreign Trade and Balance of Payments", "Monetary System", "Public Sector Finances" and "Public Debt". In addition, in those
and other portions of this Offering Circular, the words "anticipates", "believes", "contemplates", "estimates", "expects", "plans",
"intends", "projections" and similar expressions, as they relate to the Republic, are intended to identify forward-looking statements.
Such statements reflect the current views of the Republic with respect to future events and are subject to certain risks, uncertainties
and assumptions. The Republic undertakes no obligation to update or revise any forward- looking statements, whether as a result of
new information, future events or otherwise. In light of these risks and uncertainties, there can be no assurances that the events
described or implied in the forward-looking statements contained in this Offering Circular will in fact occur.
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ARBITRATION AND ENFORCEABILITY

The Republic is a foreign sovereign state. Consequently, it may be difficult for investors to obtain or realize upon judgments
in the courts of the United States. Under its Constitution, the Republic is not permitted to consent to jurisdiction of the courts of any
foreign jurisdiction. The Republic has not consented to the jurisdiction of any court outside El Salvador in connection with actions
arising out of or based on the Notes or in connection with the enforcement of any judgment arising out of such actions, nor has the
Republic appointed an agent for service of process outside El Salvador. The Republic has agreed to the following arbitration
provisions as part of the terms and conditions of the Notes:

Any dispute, controversy or claim arising out of or relating to the Notes (other than any action arising out of or
based on the United States federal or state securities laws), including the performance, interpretation, construction,
breach, termination or invalidity thereof, shall be finally settled by arbitration in accordance with the Arbitration
Rules of the United Nations Commission on International Trade Law (excluding Article 26 thereof) as in effect on
the date of the Indenture (the "UNCITRAL Arbitration Rules"). The number of arbitrators shall be three, to
be appointed in accordance with Section II of the UNCITRAL Arbitration Rules. The appointing authority
shall be the Chairman of the International Court of Arbitration of the International Chamber of Commerce. The
third arbitrator may be (but need not be) of the same nationality as any of the parties to the arbitration. The place
of arbitration shall be New York, New York. The language to be used in the arbitration proceedings shall be
English. Any arbitral tribunal constituted under this paragraph shall make its decisions entirely on the basis of
the substantive law of the State of New York.

The decision of any arbitral tribunal shall be final to the fullest extent permitted by law, and a court judgment may
be entered thereon by any Salvadoran court lawfully entitled to enter such judgment. In any arbitration or related
legal proceedings for the conversion of an arbitral award into a judgment, the Republic will not raise any defense
that it could not raise but for the fact that it is a sovereign state. The Republic has not consented to the jurisdiction
of any court outside El Salvador in connection with actions arising out of or based on the Notes or in connection
with the enforcement of any judgment arising out of such actions, nor has the Republic appointed an agent for
service of process outside El Salvador. The Republic waives any forum non conveniens defense in any proceeding
in El Salvador.

No arbitration proceedings hereunder shall be binding upon or in any way affect the right or interest of any
person other than the claimant or respondent with respect to such arbitration.

The Republic's consent to arbitration shall not preclude a holder of any Note from instituting legal proceedings
against the Republic in the courts of El Salvador.

The Republic has represented that it has no right to immunity on the grounds of sovereignty or otherwise, from the execution
of any judgment in El Salvador, or from the execution or enforcement in El Salvador of any arbitral award (except, in each case,
for the limitation on alienation of public property) in respect of any proceeding or any other matter arising out of or relating to its
obligations contained in the Notes. The enforcement by a Salvadoran court of a foreign arbitral award is subject to recognition by the
Corte Suprema de Justicia (the "Supreme Court") of the Republic, which will recognize such award if all of the required formalities
are observed and the award does not contravene Salvadoran national sovereignty, constitutional rights or public policy and compliance
with the obligations stated in the award is lawful in El Salvador. Under the laws of the Republic, public property (bienes de uso
público) of the Republic located in El Salvador is not subject to execution or attachment, either prior to or after judgment. The
execution of a judgment against the Republic in El Salvador is only available in accordance with Article 182 ordinal 4 of the
Constitution of the Republic of El Salvador and the procedures set forth in Articles 555 to 558 and 590 et seq. of the Salvadoran Civil
and Business Procedure Code; pursuant to Article 590, if the budget of the fiscal year in which a final judgment is issued is not adjusted
to provide for payment of the judgment, registration of the judgment for inclusion in the budget of a subsequent fiscal year of the
Republic is required for payment.

EXCHANGE RATE INFORMATION

On November 30, 2000, the Legislative Assembly approved the Ley de Integración Monetaria (the "Monetary
Integration Act"), which fixed the colón to the US dollar at ¢8.75 to US$1.00, effective January 1, 2001. Since January 1, 2001, the
colón/US dollar exchange rate has been fixed at ¢8.75/US$1.00 pursuant to the Monetary Integration Act. The Monetary Integration
Act allows free circulation of the US dollar in the Salvadoran economy and makes the US dollar the unit of account for the financial
system in El Salvador.

Currency conversions contained in this Offering Circular should not be construed as representations that colones have been,
iv





could have been or could be converted into US dollars at the indicated or any other rate of exchange.
v





SUMMARY

The following summary does not purport to be complete and is qualified in its entirety by, and is subject to, the detailed
information appearing elsewhere in this Offering Circular.

The Republic of El Salvador

General

El Salvador is geographically the smallest and the most densely populated of the five Central American countries, encompassing
8,127.37 square miles (21,040.79 square kilometers). El Salvador is bounded on the south by 210 miles of Pacific Ocean coastline, on
the northwest by Guatemala and on the northeast and east by Honduras. In the north, the Sierra Madre mountains rise to over 9,000 feet
above sea level. There are 23 volcanoes in the country, most of which are dormant. The most recent major volcanic eruption was in 1946.
Minor volcanic eruptions occurred in 2005, 2013, 2014, 2015 and 2016.

The population of El Salvador in 2018 was estimated at 6.6 million according to the Dirección General de Estadística y Censos
(the "National Bureau of Statistics and Census"), a division of the Ministry of Economy. In 2018, approximately 61.7% of the population
resided in urban areas and 38.3% resided in rural areas. In addition, more than 1.5 million Salvadorans are believed to be living and
working outside of the country, principally in the United States.

According to the most recent National Bureau of Statistics Census, in 2007, over 72.3% of the population is mestizo of mixed
European and indigenous descent. San Salvador, the capital and country's largest city, had a population of approximately 340,686 in
2018. The average annual population growth rate for the Republic was projected to be approximately 0.9% for the period between 2014
and 2018. Most of the population is Roman Catholic.

El Salvador is a republic and representative democracy and its form of Government is a presidential system with a unicameral
legislature, with powers divided among executive, legislative and judicial branches. On February 3, 2019, presidential elections were held
and Nayib Armando Bukele Ortez of the Gran Alianza por la Unidad Nacional ("GANA") party was elected president with approximately 53.1%
of the vote.

President Bukele Ortez's campaign platform was based on the Plan Cuscatlán, which encompasses his administration's action plans for
his five year-term. Plan Cuscatlán, focuses on eight main platforms: social welfare, security, emigration and labor, international relations, industry
and production, economy and finance, public works and territorial development.

The Salvadoran Economy

The Salvadoran economy relies heavily on the service sector, which totaled US$16,669.5 million and accounted for 64.0% of nominal
GDP in 2018. The service sector generated on average 63.8% of the country's nominal GDP annually during the period 2014 to 2018 and grew
at an average rate of 2.4% during the same period in real terms. The service sector is composed of sixteen economic activities: electricity, gas,
steam and air conditioning supply; water supply, sewerage and waste management; wholesale and retail trade, repair of motor vehicles and
motorcycles; transportation and storage; accommodation and food service activities; information and communication; financial and insurance
activities; real estate activities; professional, scientific and technical activities; administrative and support service activities; public administration
and defense; compulsory social security; education; human health and social work activities; arts, entertainment and recreation; other service
activities; and domestic services activities.

The industrial sector has been a significant factor in El Salvador's growth in recent years. In 2018, the industrial sector contributed
US$5,585.0 million to nominal GDP, and accounted for 21.4% of El Salvador's nominal GDP, compared to approximately US$5,337.9 million,
or approximately 21.4% in 2017. The sector has expanded from 2014 to 2018 at a 2.2% annual average growth rate. Real GDP growth for the
industrial sector increased by 1.5%, 2.2%, 1.5%, 2.5% and 3.4% in 2014, 2015, 2016, 2017 and 2018, respectively. The industrial sector is
composed of the manufacturing and construction activities.

On average, during the period 2014-2018, the primary sector represented 5.7% of nominal GDP and grew at a real rate of 0.5%. In 2018,
the primary sector accounted for 5.2% of nominal GDP, approximately US$1,344.3 million. The primary sector is composed of agriculture,
livestock farming, forestry and fishing and mining and quarrying activities.

Coffee is an important source of employment in El Salvador. According to the Salvadoran Coffee Council ("Consejo Salvadoreño del
Café"), the coffee industry generated approximately 35,001 jobs during the 2013/2014 harvest; 46,258 jobs during the 2014/2015 harvest; 39,237
jobs during the 2015/2016 harvest; 42,280 jobs during the 2016/2017 harvest; 45,271 jobs during the 2017/2018 harvest; and preliminarily 47,351
jobs during the 2018/2019 harvest. Coffee production decreased 59.5% in the 2013/2014 harvest, increased 32.2% in the 2014/2015 harvest,
decreased 15.2% in the 2015/2016 harvest, increased 7.8% in the 2016/2017 harvest, increased 7.1% in the 2017/2018 harvest, and increased
1




4.6% in the 2018/2019 harvest. According to the Central Bank, coffee exports accounted for 62.6%, 69.6%, 67.6%, 68.6%, and 66.5% of
agricultural exports in 2014, 2015, 2016, 2017 and 2018, respectively. In 2014, 2015, 2016, 2017 and 2018, coffee exports accounted for 2.1%,
2.7%, 2.0%, 2.1%, and 1.9% of total exports, respectively.

The unemployment rate averaged 6.9% during the period 2014-2018. From 2014 to 2017, the unemployment rate was steady at 7.0%,
while in 2018, the rate decreased to 6.4%.

Economic growth has led to a decrease in the level of poverty in El Salvador. From 2008 to 2018, the number of households living
below the poverty line decreased from 40.0% to 26.3%. As of December 31, 2018, 24.1% of households in urban areas and 30.0% of households
in rural areas lived below the poverty line. The percentage of households living in extreme poverty decreased from 12.4% in 2008 to 5.7% in
2018.
Foreign Trade and Balance of Payments

In 2018, merchandise imports accounted for 45.4% of nominal GDP, mainly in the form of intermediate goods (42.1% of total imports)
and consumer goods (37.0% of total imports). Imports have grown at an average annual rate of 2.1% from 2014 to 2018. During this period,
exports have grown at an average rate of 1.4%.

El Salvador has benefited from regional trade initiatives that have opened up the markets of Central American nations to other nations
in the region. Regional integration has been especially beneficial to manufacturing activity. Increased access to international markets and
liberalization of trade barriers are components of El Salvador's plan to increase international competitiveness, improve export revenues and
encourage foreign investment. Before 2004, El Salvador entered into trade agreements with Chile, Panama, and the Dominican Republic. Since
2004, El Salvador has intensified its efforts to strengthen its trade arrangements with its primary trading partners including:

·
participating in free trade agreements with various Latin American countries;

·
entering into a free trade agreement with Colombia that became effective in February 2010;

·
entering into a free trade agreement with Mexico that became effective in September 2012;

·
entering into a partial scope trade agreement with Cuba effective in July 2012;

·
entering into an association agreement with the European Union that became effective in October 2013;

·
entering into a partial scope agreement with Ecuador which entered into force in November 2017; and

·
entering into the free trade agreement with South Korea which was signed in February 2018, and is awaiting ratification.

On December 13, 2018, El Salvador delivered a termination notice to Taiwan related to the bilateral free trade agreement which
had entered into force in March of 2008. The termination notice was delivered due to the severing of diplomatic ties between El Salvador
and Taiwan. See "Foreign Trade and Balance of Payments--Regional Integration and Free Trade."

The current account deficit in the balance of payments decreased from 5.4% of nominal GDP in 2014 to 4.8% of nominal GDP
in 2018, offset by an increase in the trade deficit as a result of a 14.8% increase in imports, compared to a 13.8% increase in exports.

FDI totaled US$8,461.7 million, US$8,971.8 million, US$9,046.7 million, US$9,384.1 million and US$9,704.5 million in 2014,
2015, 2016, 2017 and 2018, respectively. The main FDI activities measured as the average share of FDI in the period 2014-2018 were:
financial and insurance with 34.7%; manufacturing with 26.7%, and information and communications with 13.8%. FDI totaled US$177.3
million during the three-month period ended March 31, 2019, compared to US$401.4 million during the three-month period ended March
31, 2018.

As of December 31, 2018, the Central Bank had international reserves equivalent to 3.2 months of imports of goods, excluding
maquila. In 2014, 2015, 2016 and 2017, the Central Bank maintained reserves equivalent to 2.9, 2.9, 3.3 and 3.5 months, respectively, of
imports of goods, excluding maquila. As of December 31, 2018, the balance of net international reserves totaled US$3,353.6 million,
representing an increase of 2.5% compared to 2017. As of June 2019, net international reserves totaled US$3,757 million compared to
US$3,457.4 million as of June 2018.

Remittances totaled US$4,139.2 million in 2014, US$4,256.6 million in 2015, US$4,543.8 million in 2016, US$4,977.7 million in 2017
and US$5,369.8 million in 2018, representing 18.3%, 18.2%, 18.8%, 20.0% and 20.6% of GDP, respectively. Remittances totaled US$1,293.0
million during the three-month period ended March 31, 2019, compared to US$1,218.2 million during the three-month period ended March 31,
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