For comments, the draft decree came out through which the National Government seeks to advance the concepts of favorability for external credit operations, whose purpose is to obtain resources for the financing of economic development plans and seek balance in the balance of payments.
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This commission can make two decisions, the first is to approve said concepts or the second is not to do so. In the event that this body does not issue a favorable opinion, the Executive can deviate from its recommendations. since such a concept is not binding.
Thus, the draft decree establishes that the members of the Interparliamentary Commission on Public Credit be summoned on an ordinary basis by the Minister of Finance and Public Credit or the Vice Minister, at least eight days in advance; which may be sent by any verifiable means. The respective meeting will be held at the facilities of the Ministry of Finance and Public Credit, unless the Ministry provides otherwise.
“No external credit contract entered into or guaranteed by the Government will be valid if the Interparliamentary Advisory Commission created by Law 123 of 1959 has not been previously convened by the Government in order to inform it.”says the draft decree.
It is worth highlighting that several summons have been presented in recent months, but of the issues to be studied, only one has been able to move forward and that was to give favorability to an energy transition credit. for $138.5 million. The others have been put on standby due to lack of quorum.
Treasury.
What does the regulations propose?
At the end of November of this year, the Government issued a rule that sought to make the process of convening parliamentarians more agile and request the final guarantee for debt quotas previously approved by the House of Representatives and the Senate of the Republic.
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There it was established that “In the event that, having been summoned on two occasions in the established terms, in particular in compliance with what is indicated in article 2.2.1.6.7. of this Decree, the Interparliamentary Commission on Public Credit does not render the respective concept in the following thirty (30) calendar days from the date of the second call, the requirement will be deemed fulfilled and the Ministry of Finance and Public Credit may continue with the process. “for the authorization and execution of public credit operations”noted that document.
The modification that will be made with this new regulation, which will be available for comments until December 18 of this year, is that if a session cannot be called more than twice, the topic to be discussed will be understood as an unfavorable concept. with which the Government will be able to advance in these procedures.
“In the event that, having been summoned on two occasions in the established terms, in particular in compliance with what is indicated in article 2.2.1.6.7. of this Decree, the Interparliamentary Commission on Public Credit does not render the respective concept in the following thirty (30) calendar days On the date of the second call, it will be understood that that concept is unfavorable and, in consideration of its non-binding naturethe Ministry of Finance and Public Credit may continue with the process for the authorization and celebration of public credit operations, except if it notices the occurrence of the situation referred to in article 3 of Law 18 of 1970″, states the draft decree.
It is worth mentioning that this Interparliamentary Public Credit Commission is made up of six members, elected by each of the Third Constitutional Commissions through the electoral quotient system, at a rate of three members for each Commission.
“In other words, so that the Government or the state entity can proceed to manage an external public credit operation, it must inform said Commission, and in the event that this body does not issue a favorable opinion, the Executive can deviate from its recommendations, given that such a concept is not binding”, highlights the document.
LEIDY RUIZ
Portfolio Journalist
