Congressmen blame the Executive for lack of progress in CABEI credit

Congressmen blame the Executive for lack of progress in CABEI credit

2023-09-23 02:08:43

President of the Treasury Commission and head of the PUSC bench regretted the government’s actions.

Given the announcement by the Executive Branch that they have enabled a website for people to write to congressmen from their provinces requesting approval of a loan that the Executive Branch signed with the Central American Bank for Economic Integration (CABEI), the head of the bench of the Christian Social Unity Party (PUSC), Alejandro Pacheco Castroand the National Liberation deputy and president of the Financial Affairs Commission, Paulina Ramirez Portuguezcriticized the government’s pressure measure.

The credit is processed under legislative file 23,635 in the Tax Affairs Commission and It is in the amount of 700 million US dollarshas a payment term of up to 30 years from the first disbursement (including up to 5 years of amortization grace period) and will have a variable annual interest rate that would currently be 7.65%

Regarding the progress, Representative Ramírez pointed out that the Tax Affairs Commission, in which this project is discussed, has already held a series of hearings and consultations to “ensure adequate execution and that the conditions are adequate”. Ramirez added:

“We are talking about a credit of a significant amount where the country is currently in a quite complex situation regarding the debt we have in the Central Government.”

According to the representative, a series of identified observations and omissions have also emerged in the commission, and she pointed out:

There is a lack of information on the pre-investment phase, the execution scheme is complex, very confusing and bureaucratic, there are several implementation firms, and one implementation firm that regulates all the others, which puts at risk efficient execution, as has happened with the majority of loans with CABEI.which are on the red list for non-execution according to the Comptroller’s report.”

The president of the Finance Affairs Commission added that although the project was presented on March 13, in that period the commission has had to attend to several extraordinary budgets that have priority on the legislative agenda, which were presented by the Executive Branch and delayed the progress of other projects.

Additionally, Ramírez questioned the high costs associated with technical personnel and the high interest rate, and according to the representative with the Inter-American Development Bank (IDB) or with the Development Bank of Latin America and the Caribbean (CAF) the conditions “the conditions would be much cheaper than what they are presenting with CABEI.” The representative concluded by pointing out that they have already made these observations about the credit to the Executive and rather they are waiting for the Central Government to address the observations and send them a proposal, which includes the projects that would be financed. “so that they are not subsequently changing the destination of these resources.”

For his part, the head of the PUSC caucus described the government’s actions as regrettable and assured that, despite the fact that his caucus supports the project, these types of actions “far from helping, they rather hinder the process for approval”.

Deputy Pacheco pointed out that his party cannot be held responsible for the delay, and added:

I regret, once again, that the government attempts pressure measures by frightening citizens, when they themselves are the ones who have not generated the corresponding dialogue and the necessary ways to move forward.”

As reported by the Presidential House, the credit would allow 88 bridges, 88 roads and 74 railway lines that are in poor condition, as well as 47 educational centers, two housing projects and a total of 203 emergency works that have been impacted by disaster emergencies. that the country has suffered.

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