Asobancaria warns that the emergency decree has no legal or technical basis and would affect credit, investment and country growth.
The president of Asobancaria, Jonathan Malagonassured that the economic emergency decree issued by the National Government does not have legal or technical foundations and warned that the measure would have direct effects on the credit, investment and economic growth of the country.
Questions regarding the support of the decree
The manager stated that there is no supervening fact that justifies the declaration of economic emergency. According to the union leader, the measure resumes proposals that have already been rejected by Congress.
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“There is no supervening event that justifies a measure of this type, especially because it revives through the back door a tax reform which was defeated in democracy in the Congress of the Republic”, he noted.
Impact on the financial sector
The president of Asobancaria warned that the decree includes a over-overrate that raises the financial sector income tax until the 50%which, as he explained, would have structural effects on banking activity in the country.
“With this over-surcharge, the half of Colombia’s banking activity would remain in the hands of the State,” said Malagón, warning that the country would have one of the less competitive schemes for the international financial business.
Effects on credit and investment
Malagón maintained that the consequences of the decree would not be limited to the financial sectorbut would directly impact homes and businesses.
“This has implications for families who want to access a housing creditfor entrepreneurs who want to expand their production, for students who want to finance their education and for him credit in general in Colombia,” he indicated.
Warning about economic growth
Asobancaria also warned that these types of measures discourage private investment and affect the long term growth of the economy.
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“The country needs more investment and more growth. Measures like these end up displacing the private sector in favor of public sector and compromise the long-term growth of the colombian economy”, concluded Malagón.
Source: Integrated Information System
