Chamber approves Kast's three vetoes to the mega-reform and sends them to the Senate

The Chamber of Deputies approved the three suppressive vetoes presented by President José Antonio Kast to the mega-reform, so the government's observations were dispatched to be considered by the Senate. The vetoes aim to eliminate three issues that had been incorporated during the processing of the initiative: the right to financial forgetfulness for debts, the prohibition of charging interest on interest (usury), and adjustments aimed at guaranteeing payment within 30 days for SMEs. The first vote was on the suppressive veto regarding the prohibition of usury, which was approved by 75 votes in favor, 59 against, and 12 abstentions. Then, the Chamber supported the presidential observation on the right to financial forgetfulness for debts, with 75 votes in favor, 58 against, and 13 abstentions. Finally, the veto concerning adjustments aimed at guaranteeing payment within 30 days for SMEs was approved by 74 votes in favor, 50 against, and 22 abstentions. With this, the government managed to pass the first stage in the Chamber for its three observations to the project, which had been dispatched into law last August 4. Government justifications for the vetoes President Kast's observations—based on the concept used by the Constitution—aimed to correct or erase norms that were incorporated during the process by the opposition and that were not to La Moneda's liking. The government justified the vetoes warning that the norms in question could generate negative effects on the financial system, access to credit, and the operation of micro, small, and medium-sized enterprises. President José Antonio Kast's vetoes arrived with a positive report to the Chamber's floor and with the recommendation to approve from the Finance Committee of the body. This body approved the observations beforehand with ten votes in favor and three against, including support from the Christian Democratic Party and another from the Democratic Party of the People, which suggested a promising day for the Executive. Quiroz defends the vetoes At the start of the debate, Finance Minister Jorge Quiroz reiterated the government's objections to the three norms in question. There, the country's finance chief stated that these three initiatives "seem good, but have very bad consequences." Regarding usury, he detailed that its elimination "directly affects millions of savers. Think of the millions of savers with adjustable deposits every 30 days, renewable deposits every 30 days; basically, interest could not be accumulated after the first 30 days." In this regard, he cited reports from the Central Bank and the Financial Market Commission (CMF), indicating that such a measure "not only would not reduce credit costs but would increase them for both depositors and borrowers." Regarding the right to financial forgetfulness, Quiroz indicated that a norm already exists that enshrines this right, but that the initiative promoted by the opposition "is the elimination of internal records," which allow for determining the profile of debtors. "It allows distinguishing the risks of one type of creditor from another," and that "when complete system records are eliminated, proper debt collection management becomes impossible, and the incentives for timely compliance with all these obligations are weakened." He also indicated that, in tax matters, "it would hinder investigations beyond 5 years due to various money movements." Finally, regarding the 30-day payment for SMEs, Quiroz argued that "agreeing on longer payment terms is already established in current law, and what this article seeks is to eliminate exceptions," which, in his view, "does not align with reality." He cited agricultural workers as an example, stating that in that sector "the person incurs debt at the moment of planting with supplies, fertilizers, etc., to pay it later at harvest, and that is much more than 30 days." He added that a norm of this kind, without exceptions, "would probably force the use of much more expensive bank credits and would incentivize the use of alternative documentation methods to invoices, with the consequent risk of commercial and tax informality." Debate Expressing his vote in favor, Deputy Agustín Romero (Republican), who is also president of the Finance Committee that recommended the report, said that "this bill seeks the reconstruction of destroyed zones, to encourage employment, obviously investment, and economic growth, and we cannot turn it into a vehicle to incorporate norms unrelated to its core ideas and that could also end up harming Chileans." On the other side, Deputy Carolina Tello (FA) opposed the approval of the presidential observations. "We cannot approve these vetoes, of course, because they not only benefit the super-rich but also undo the little balance that had been achieved for all the people living in this country, from the regions that need reconstruction, small businesses, and families; once again, they were not listened to." Deputy Héctor Ulloa (PPD) also questioned the vetoes and pointed out that "there are ethical limits that cannot be subordinated solely to market logic." Meanwhile, Deputy Iraci Hassler (PC) stated that the PC would not support a measure that "removes permanent resources from social benefits to finance the mega-tax reform." From the Republican Party, Deputy Cristián Neira expressed his favorable vote to the government's vetoes, affirming that these "correct norms that generate institutional, economic, and practical problems." From his own party, Stephan Schubert highlighted the problems that, in his opinion, the right to forgetfulness generates: "If information is omitted from those who have the decision to grant credits, the only thing that will be achieved is to make credits more expensive," he said, adding that this measure "harms everyone who is not a debtor." Similarly, UDI Deputy Alejandra Valdebenito also questioned the measure, stating that "we must understand that not all regulation aimed at protection ends up protecting; sometimes it turns out to be completely the opposite." From the opposition, PPD Carlos Cuadrado adopted a harsher tone, pointing all his criticisms at the Minister of Finance, saying he seeks to help those who have the most. In voting against, he said it represents "a no to orthodoxy and to all the pettiness that Minister Quiroz embodies." Immediately afterward, Deputy José Antonio Kast (REPUBLICAN) responded that "in the face of siren songs, we will always choose responsibility." UDI Deputy Guillermo Ramírez, for his part, criticized opposition parliamentarians for their scant contribution to the development of the mega-reform. "Today we are voting on the only contributions the left has made to the project, which are three norms that sound good but do harm." Regarding this point, Deputy José Carlos Meza (REPUBLICAN) said, "We will see how this movie ends with this last chapter from the left, approving norms that they know sound good but also know—because experts said so—that they work very poorly and will harm the most vulnerable in the country." "He doesn't care if the country does well; the only thing that matters to him is that President Kast does badly, even if it means dragging all Chileans down," he said.