Vote Results
In a session held on Monday, the Chamber of Deputies approved all three vetoes submitted by President José Antonio Kast to the mega-reform, also known as the National Reconstruction Law. The first veto, which sought to eliminate the prohibition on anatocism (charging interest on interest), passed with 75 votes in favor, 59 against, and 12 abstentions. The second veto, targeting the so-called 'financial forgetfulness' right for debtors, was approved with 75 votes in favor, 58 against, and 13 abstentions. The third veto, which aimed to remove provisions guaranteeing 30-day payment terms for small and medium-sized enterprises (SMEs), received 74 votes in favor, 50 against, and 22 abstentions.[S1][S2][S3]
With these approvals, the government's observations have been dispatched to the Senate for further consideration. The Senate is expected to take up the matter on Wednesday, August 12, according to projections. The lower house's approval marks the first legislative hurdle for the vetoes, which were introduced to strip out provisions added during the bill's earlier stages. Notably, the opposition had managed to insert these provisions, but the government's vetoes now seek to remove them, with the ruling coalition voting in a bloc in favor of the suppressions.[S1][S2][S3]
Government's Justification
Finance Minister Jorge Quiroz defended the vetoes at the start of the debate, arguing that the three measures 'seem good, but have very bad consequences.' Regarding anatocism, he explained that eliminating it would directly affect millions of savers who hold 30-day renewable deposits, as interest could not be accumulated after the first month. Citing reports from the Central Bank and the Financial Market Commission, he said the measure would not reduce credit costs but would increase them for both depositors and borrowers.[S1][S4]
On the financial forgetfulness right, Quiroz noted that existing law already provides for such a right after five years, but the contested provision would eliminate internal bank records used to assess debtor risk profiles. He argued that removing these records would hinder proper debt collection and weaken incentives for timely compliance. Additionally, he said the measure would conflict with the Tax Code by preventing investigations into money movements older than five years. Regarding the 30-day payment rule for SMEs, Quiroz stated that current law already allows longer payment terms, and the vetoed article sought to eliminate exceptions, which he said does not reflect reality, citing agricultural workers who often pay after harvest, well beyond 30 days.[S1][S4]
Legislators' Reactions
Deputy Agustín Romero of the Republican Party, who chairs the Finance Committee that recommended approving the vetoes, said the bill aims to rebuild disaster-affected areas, boost employment, investment, and economic growth, and should not be used as a vehicle for unrelated norms that could harm Chileans. In contrast, Deputy Carolina Tello of the Broad Front opposed the vetoes, arguing they benefit the super-rich and ignore the needs of ordinary people, small businesses, and families. Deputy Héctor Ulloa of the PPD also criticized the vetoes, stating that ethical limits cannot be subordinated to market logic.[S1]
Deputy Irací Hassler of the Communist Party said her party would not support measures that take permanent resources away from social benefits to finance the mega-reform, and she accused the government of being anti-SME. Republican Deputy Cristián Neira voted in favor, saying the vetoes correct norms that generate institutional, economic, and practical problems. His party colleague Stephan Schubert highlighted issues with the financial forgetfulness right, warning that omitting information from credit decision-makers would only lead to problems. The opposition's attempts to reject the vetoes were unsuccessful, as the government's coalition voted in a bloc, and the PDG abstained on all three votes.[S1][S3][S4]
