El Salvador: a world of opportunity.

Confidence in El Salvador's economic policies and its future with the Central American Free Trade Agreement (CAFTA) was immediately evident in September when international investors quickly took the opportunity to buy bonds issued by the country.

Within minutes of El Salvador's offer to sell US$286.5 million in bonds in the New York Stock Exchange last Sept. 14, purchase orders rose to US$2.653 billion, which means demand surpassed 900% and shows the high level of confidence among investors about putting money into the country.

The record-breaking bond issue came just a few days after President Elias Antonio Saca commemorated his administration's100-day mark. It showed that already, he has given the world's financial community significant signals of leading the country's fiscal policy in a prudent and responsible manner, and that he has laid the foundation for a more stable country, where it is safe to invest.

Despite an interest-rate increase throughout the international financial market and against expectations, El Salvador was able to offer a 7.625 rate, similar to the one in its last bond issue, thanks to its BB+ credit rating*, which analysts attributed to its prudent and responsible fiscal policies, its macroeconomic stability, structural reforms, moderate debt and falling poverty.

ARENA, El Salvador's ruling party, has secured the peace in the country, returned it to a free market economy, rebuilt key portions of El Salvador's infrastructure damaged by the 12-year civil war, and is quickly overcoming the effects of the 2001 earthquakes.

It has begun its economic recovery. Changes to the country's tax policies, such as the introduction of value-added taxes, and more than US $2 billion in annual remittances from Salvadorans overseas have contributed to some of its economic growth.

Ever since President Saca assumed control of the government, he has called on leaders from varied political leanings to a series of conversations to reach consensus on issues such as job creation and governance.

President Saca's administration, whose slogan proposes "a humane government," seeks to make sure that economic progress reaches the pockets of all Salvadorians, especially in rural areas.

His agenda includes significant health system and education improvements, more job creation and a crackdown on gang activity. However, his plan also includes rehabilitation programs for former gang members who want to leave behind their lives of crime.

His agenda also seeks to strengthen even more its economy, reactivate the agricultural sector and diversify the assembly industry, by taking it further.

Another important aspect in President Saca's agenda is promoting tourism in El Salvador by emphasizing its Pacific Ocean-washed beaches. Several investors have already expressed interest in building resorts.

Also key to the country's economic future is the development of a port in La Union, which will lead to the creation of a dry canal that will connect the Pacific and Atlantic oceans through Honduras, and will provide an alternative to the Panama Canal.

In addition to its excellent transportation and economic infrastructure, El Savador's economy is dollarized, which facilitates negotiations for investors. Other great attractions are low business and living costs, which position this Central American nation for rapid growth with CAFTA.

* NOTE: According to credit rating entities Moody's, Standard & Poor and Fitch, El Salvador has an investment rating of Baa3, BB+ and BB- respectively.