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Original article: Cámara aprobó autorización de endeudamiento solicitada por Gobierno de Kast: USD 6.200 millones

Chilean Chamber Approves USD 6.2 Billion Debt Authorization Requested by President Kast

The Chamber of Deputies has approved, both in general and in detail, the project presented by the Government (bill 18296) requesting an additional USD 6.2 billion debt authorization, which may be realized until December 31, 2026.

From La Moneda, it was explained that the increased borrowing is primarily due to three factors. The first addresses a fiscal deficit that is higher than anticipated in the 2026 Budget Law, particularly due to lower actual revenues. This deficit is projected at USD 3.8 billion, as noted in the Chamber’s bill.

The second point refers to «an appreciation of the peso against the dollar, which is necessary to finance the same level of obligations in local currency. As specified, ‘each dollar yields fewer Chilean pesos.’ This issue is estimated at USD 900 million,» the report adds.

Finally, the Executive argued that USD 1.5 billion is needed «to timely meet fiscal obligations (the state’s floating debt with suppliers),» and additionally, aims to «strengthen the liquidity position» of the Public Treasury.

«The authorization granted to the President of the Republic will be exercised through supreme decrees issued by the Ministry of Finance. These will specify the destination of the obligations incurred and will indicate the sources of resources against which the debt service will be made,» states the Chamber’s bill.

«Copies of these decrees will be sent to the Finance Committees of both the Chamber and the Senate, within 15 business days following their publication in the Official Journal,» the information emphasized.

During the debate, there was widespread opposition from the PC, FA, PS, and PPD factions, whose legislators asserted that this money wouldn’t support the fiscal deficit but would instead cover the impacts of the national reconstruction project, expressing discontent over the tax cuts benefiting the wealthy while social programs «suffer cuts.»

We will continue to provide updates.

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