National Assembly approves BDH increase

After two debates, yesterday the draft Law for the Re-distribution of social spending, was approved with 79 votes at the Plenary of the National Assembly.

After two debates, yesterday the draft Law for the Re-distribution of social spending, was approved with 79 votes, giving guidelines to the Government to fund the increase of the Human Development Bond (BDH for its Spanish acronym) from $35 to $50 with profits from private banks.

Some Assembly members opposing the project, said the increase of the bond is a government strategy as well as an abuse of power, since it was presented in an electoral process.

The president of the Commission of Economic System and member of the ruling party, Francisco Velasco, explained that the private banking earns profits (10.13% solvency) above the internationally required solvency (9%).

Furthermore, the Association of Private Banks in Ecuador (ABPE for its Spanish acronym) presented a constitutional claim over the approval of the tax reform. (MZ)