VZCZCXYZ0000
RR RUEHWEB

DE RUEHSN #0689 2031908
ZNR UUUUU ZZH
R 221908Z JUL 09
FM AMEMBASSY SAN SALVADOR
TO RUEHC/SECSTATE WASHDC 1419
INFO RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEAWJA/DEPT OF JUSTICE WASHINGTON DC

UNCLAS SAN SALVADOR 000689 
 
SIPDIS 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: EFIN ETTC KTFN ES
 
SUBJECT: NEW FINANCIAL SYSTEM SUPERINTENDENT DISCUSSES REFORMS, US 
COOPERATION 
 
¶1. (SBU) SUMMARY. In addition to his regulatory duties, new 
Superintendent of the Financial System Victor Ramirez is actively 
involved in an ambitious reform agenda for the financial system, 
including a consolidated supervision law and a new credit card law. 
The slow pace of financial laws in the Legislative Assembly, 
however, suggests that only a small part of his reforms are likely 
to become reality.  Ramirez's interest in cooperation and technical 
assistance on combating money laundering and terrorism finance 
provides a new opportunity for the USG to reengage with El 
Salvador's banking regulator.   End summary. 
 
¶2. (SBU) On July 10, A/Econcouns called on new Superintendent of the 
Financial System Victor Antonio Ramirez Najarro.  In addition to his 
duties as banking system regulator, Ramirez stated that he was 
actively involved in proposed financial reforms within the 
government.  Ramirez noted that a long-awaited effort to combine the 
Superintendents of the Financial System, Stock Market, and Pensions 
into a unified regulator was again stalled in the Assembly.  He 
expected the law to pass eventually, since the International 
Monetary Fund (IMF) was requiring it as part of future assistance, 
and noted that once it passed the integration process would take two 
to three years. 
 
¶3. (SBU) The Superintendency is also analyzing a proposed Credit 
Card Law before the Legislative Assembly (additional details 
reported septel).  Ramirez said that the Government of El Salvador 
(GOES) was concerned that a proposed interest rate cap would 
restrict credit to only around 10 percent of the population.  The 
GOES was therefore looking at alternative reforms to propose. 
Ramirez inquired about recent changes in the US, and A/Econcouns 
agreed to send a summary of recent US credit card reforms. 
 
4 (SBU) Ramirez reported that other pending projects include an 
Investment Funds Law, a Personal Bankruptcy Law, reforms to the 
Insurance Law, reforms to the Consumer Protection Law regarding 
financial issues, and reforms to the Securitization Law.  The 
Superintendency was also considering a regulation that would require 
the Presidents and Directors of financial institutions to be 
physically present in El Salvador for board meetings. 
 
¶5. (SBU) Discussing money laundering and efforts to combat terrorism 
finance, Ramirez said that he was very interested in cooperation 
with the US and possible technical assistance, specifically on 
detecting money laundering.  Ramirez will submit a letter with a 
formal request for assistance to the Embassy. 
 
¶6. (SBU) COMMENT: A technocrat, Ramirez appeared eager to restart a 
relationship with the US on money laundering and terrorism finance. 
His designation provides an opportunity to reengage the 
Superintendency, as Ramirez's predecessor had previously refused 
offers of assistance and training from INL and kept cooperation to a 
minimum.  Given the slow pace at which past financial reforms have 
moved through the Assembly, most of Ramirez's ambitious reform 
agenda is unlikely to prosper.  END COMMENT. 
 
¶7. (U) BIO NOTE: Ramirez previously served as Superintendent of 
Pensions in the Saca Administration from January 2005-May 2009.  He 
was Manager of the Pensions System (Intendente in Spanish) between 
1997 and 2004 and was a member of the Technical Commission for the 
Reform of the Salvadoran Pensions System from 1994-1996.  From 
1987-1993, he was part of the Social and Economic Advisor Group of 
the Planning Ministry.  He holds an Economics Degree from the 
Central American University "Jose Simeon Canas" (UCA). 
 
Blau