How does the Prompt Payment Act help the government?

How does the Prompt Payment Act help the government?

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“decrees approved by the Government to save the cash flow of companies should be simpler, and so all companies can have access “Tweet ThisQuintero is clear that the decrees approved by the Government to save the cash flow of companies should be simpler, and so all companies can have access.

“We must not forget that the liquidity of companies is very affected, demand has not been activated and unemployment has continued to grow, it is important to make simpler decisions such as access to the payroll subsidy that has many restrictions, we must be practical in those decrees so that many entrepreneurs can benefit,” he said.

“Forty-eight percent of micro-enterprises generate employment and non-payment causes them to disappear, thus generating unemployment. The lack of timely payment oxygenation is bankrupting these companies”, he explained.

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Bill Payment Law

For his part, Matías Acevedo pointed out that “we need to continue moving in this direction because it is a commitment of the State to continue paying invoices on time and through portals and platforms for SMEs”. In this context, he informed that “as from May it will be possible to advance payment through Banco Estado of all invoices with a maturity of more than 15 days and with an interest rate equal to the State’s cost of funds. This will mean, for an entrepreneur, a saving of up to 3 times in the financial market”.

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To date, Dipres has already issued the respective information and is working on this implementation.    In addition, Dipres is working with those ministries that do not use the State Financial Management Information System (SIGFE), such as MOP and MINVU, so that they do not have invoices with more than 30 days outstanding.

Law 2024 of 2020

For his part, Matías Acevedo stressed that “we need to continue moving in this direction because it is a commitment of the State to continue paying invoices on time and through portals and platforms for SMEs”. In this context, he informed that “as from May it will be possible to advance payment through Banco Estado of all invoices with a maturity of more than 15 days and with an interest rate equal to the State’s cost of funds. This will mean, for an entrepreneur, a saving of up to 3 times in the financial market”.

Víctor Barrientos, who is a supplier to the State, said that “the launching of this measure has been a surprise for me. It is very useful for me as an SME, and for many SMEs that are currently suffering from a lack of liquidity. It is very good for us to have a portal that is more accessible and that has centralized payments. It also helps us to be able to access better prices with our suppliers, because by having the capital we will not have to work with so much leverage, running the risk of having our documents protested or having payment dates that we cannot meet because the State institutions do not meet the payment dates. With this measure we are also able to guarantee the salaries of our employees and allow us to work in times of crisis”.

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Banco de México is the country’s central bank. It provides the national currency and has the priority objective, established in the Constitution, of preserving its value. It also promotes the healthy development of the financial and payment systems.

The Bank’s autonomy consists in the fact that it cannot be forced to lend money to the Government, that it operates with budgetary and managerial independence, and that it determines its own policies and instruments to achieve its primary objective of maintaining price stability, as well as to carry out its other functions.

International reserves are Banco de México’s highly liquid investments in foreign currency. These investments come from foreign currency obtained mostly from PEMEX, which by law must sell them to Banco de México in exchange for their equivalent in local currency.

International reserves, in general, function as an indicator that an economy is capable of meeting its foreign currency commitments, which provides certainty to its creditors and contributes to the country’s access to resources under better conditions.

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