Chilean Chamber of Deputies approves $6.2 billion debt increase

Chile's Chamber of Deputies has approved the government's request to secure an additional $6.2 billion in debt. This financial maneuver is intended to address the funding deficit for the 2026 budget and to settle long-standing debts owed to suppliers.

The vote saw support from the ruling party, the Democratic Party of the Government (PDG), and the Christian Democrats (DC). However, the approval was not without controversy. Lawmakers raised significant concerns regarding the Health Ministry's perceived inefficient management of resources. This inefficiency has reportedly resulted in the loss of essential medications and basic supplies, fueling criticism of the government's fiscal stewardship.

Finance Minister Jorge Quiroz defended the need for the additional funds, attributing the requirement to issues with the initial budget design. "Simply put, the 2026 Budget was not adequately financed, and this project seeks to finance it, in addition to resolving the problems of outstanding debts with suppliers," Quiroz stated. He acknowledged the natural concerns arising from the situation, particularly regarding the ministry's performance.