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Increase on BDH as the main electoral strategy

Posted On 15 Oct 2012
Mothers are the largest group of beneficiaries of the Human Development Bonus delived by the Government. The number of people accessing to such aid exceed 1.9 million.

Mothers are the largest group of beneficiaries of the Human Development Bonus delived by the Government. The number of people accessing to such aid exceed 1.9 million.

Several presidential candidates have proposed, as part of their electoral campaign, to increase the human development bonus (BDH for its Spanish acronym) from $ 35 to $ 50.

Currently the bonus benefits 1’200 000 women, 600,000 seniors and about 115,000 disability citizens.

Law and finance experts say an increase of BDH is not as easy as it sounds.

Opinions:

Carlos Anchundia, President of the Association of Economists of Guayas: “For those who observe the scene from the chairs, the proposal of President Rafael Correa of financing an increase of $ 15 in the bdh using surplus of banks, is not only unwise but also illegal.”

Diego Borja, president of the Central Bank of Ecuador and former Minister of Finance: If the president wants to fund “an increase in the bonus, all he must do is get public money because otherwise he would be talking about a kind of nationalization or socialization of financial yields which at the moment remain private.”

Mauricio Pozo, former Minister of Finance, “Using bank profits to finance bonus rising or to nationalize the banks who disagree, are dangerous measures. A decision of this nature could cause a masive run on deposits.” (MZ)

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