The PLD-majority Chamber of Deputies has fast-tracked a bill authorizing a RD$1.2 billion loan for city municipalities, autonomous and decentralized government entities that have incorrectly spent the Christmas wage that is included in their allocations from the National Budget. The loan will be used for them to pay the 13th salary to their employees. The bill was presented by deputy Rene Polanco of the PLD Santo Domingo Province. It now passes to the PLD-majority Senate for approval.
The bill authorizes the state commercial bank Banco de Reservas to lend the money for the Christmas wage. The loan will be discounted from the municipalities’ 2015 budget in 11 installments.
Opposition legislators have spoken out against the common practice of taking out a loan from Banco de Reservas for this purpose every December. Legislator Jose Paliza (PRD-Puerto Plata) said that the municipalities finances were in chaos and they did not account for their use of the funds.
Legislator Graciela Fermin (PRD-Puerto Plata) said that Congress was not monitoring what the municipalities do with the funds they receive. She said the bill is unfair on the municipalities that do comply with Law 176-07 that orders the payment of the 13th wage.