Duque government declares state of economic emergency

COLOMBIA - In Brief 18 Mar 2020 by Andrés Escobar Arango

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Yesterday night, president Duque addressed the Nation, announcing the decision of the cabinet of ministers to declare a state of economic emergency, which under the Constitution gives the government the capacity to legislate by issuing government decrees, without the need of going through the normal congressional process, for a period of 30 days.This morning, he announced a list of initial measures:1. Removal of budgetary restrictions in order to make sure the health system receives all the resources required for diagnostics, treatments and to provide liquidity to hospitals2. Speed up the "punto final" strategy, designed to use TES to pay arrears to hospitals and health insurers3. temporary suspension of VAT health-related imports4. cash transfer programs Familias en Acción, Jóvenes en Acción and Colombia Mayor will receive an additional payment this year; these programs pay different amounts but cover around 11 million people5. for public health reasons, households facing suspended water and sanitation services for lack of payment will have these services reconnected without payment for the duration of the crisis6. freeze on water and sanitation tariffs7. VAT rebate for the poorest families, approved as part the 2019 tax reform, will being in April8. borrowers with payments due in the next two months allowed to renegotiate payment schedules with financial institutions without penalties9. government guarantees to firms requiring financing to keep payroll payments flowingDuring the Q&A session, the President made it clear that, even though restrictions on international flights remain in place, the Eldorado airport will not be closedRegarding the fiscal cost of these mea...