As soon as parliamentary activity resumes, the Ministry of Finance will submit to Congress for consideration a first loan contracting bill to finance the budgeted expenses of the Ministry of Public Works and Communications (MOPC) and the Ministry of Public Health. With these resources, the ministry recommends that MOPC pay the debt before thinking about new works.
The Vice Minister of Economy of the Ministry of Finance, Iván Haas, told ABC that the budget law has approved expenses for a total of US$444 million for the MOPC and Health, but not the income because the parliamentarians determined that each loan must be approved by Congress.
The Executive in its 2022 budget bill had proposed that the approval of the budget include the loans that finance the expenses, which did not run by disposition of the legislators and this situation would delay the provision of resources for these entities.
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We consulted Haas about the demand for payment of the debts that the construction contractors of the MOPC and that from this entity, it is indicated that they depend on the loan that the fiscal portfolio will request.
The data handled by the companies indicate that the MOPC has accumulated debts of some US$220 million since last year and warn that if they are not paid, they could stop the various works that are being carried out in the country.
The deputy minister stated that the debt numbers should be consulted Public Works and explained that of the US$444 million of expenses to be financed with loans, US$239 million correspond to the MOPC and US$205 million to Health, but that the request for approval will be presented in two stages.
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He said that a first project to be submitted in March for consideration by Congress would be in the order of US$200 million and the second, when it is already in the execution process, the remaining US$244 million. In both cases, he clarified that half of the funds will go to the MOPC and the other half to Health.
He announced that the loans are already managed with the Inter-American Development Bank (IDB) and with the Development Bank of Latin America-CAF, whose respective boards have already approved them.
MOPC must decide on debt
The deputy minister indicated that when the loan is approved in Parliament and the funds are obtained, the MOPC will have to decide whether to pay the debt it has with the contractor companies or carry out new works, because it is a decision that corresponds to the entity and not to Tax authorities. However, he made it clear that the recommendation of the fiscal portfolio is always to pay the debt first and then think about new works.
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The credits that will be requested to be approved are included in the fiscal deficit of 3% of GDP established in Law No. 6873 of the General Budget of the Nation (PGN) 2022, indicated the deputy minister.
The Executive had presented a PGN 2022 project with 1.5% deficit, but with authorization to raise to 3%. For their part, the parliamentarians decided to budget the red balance at the aforementioned percentage requested, approving the expenses and establishing that the credits be approved in each case via bills.