Only two parties managed to obtain bank loans to finance the municipal campaign. These are National Liberation (PLN) and Christian Social Unity (PUSC); Both groups acquired loans from the same financial institution.
Annie Saborío, treasurer of the PLN, explained that the Verdiblancos were financed thanks to a loan of ¢2.4 billion from Banco BCT, since the national bank and the cooperatives refused to lend them resources. Meanwhile, the PUSC accessed ¢1.2 billion.
Banking entities require requirements such as guarantees and vote projection studies.
Although all parties have the option of resorting to loans, the Progressive Liberal (PLP), the Frente Amplio (FA), Acción Ciudadana (PAC), Progreso Social Democrático (PPSD) and Nueva Generación (PNG) chose to rely on their own party structures to raise funds, given the reluctance of the banks.
The PLN treasurer recalled that they contacted public banks, without obtaining a positive response. “I know that they have not financed it, but by trying nothing is lost, so that the interest remains with the State bank.”
“With the BCT things were going well for us with the measurements we made, and we had access to the ¢2.4 billion in four disbursements; the first in November, the second in December, another at the beginning of January and another to close the campaign,” Saborío explained.
The PLN treasurer explained that, from these funds, the cost of managing the resources through a trust and the payment of interest must be taken out.
In addition to the central campaign structure, Liberación distributed resources among municipal candidates according to variables such as voters by canton, the party’s record of success, and possible re-elections.
In the PUSC, the loan acquired represents 90% of the resources allocated by the Social Christians for this race, since the remaining 10% corresponds to amounts contributed by supporters and candidates through donations. The contribution figure amounted to ¢133 million according to the last cut made by the party, at the end of December 2023.
All expenses incurred by a party during the campaign must be reported to the Political Party Financing department of the Supreme Election Tribunal (TSE). Unreported donations are punishable by the Electoral Code with prison sentences.
Resources came from their own ranks
Patricia Mora, president of the Frente Amplio and candidate for mayor of San José for that group, indicated that the party’s financing comes from its own resources, loans from affiliates ranging from ¢50,000 to ¢3 million and donations. In total, the FA had ¢196 million for this campaign.
For Mora, the lack of financing from banking entities “accentuates the gap in access to financing between larger and smaller parties.” She said she felt “concerned” about the questions about the financing of other political forces that the TSE has revealed, which she described as a “blow” to democracy.
In the case of the PLP and the PAC, their candidates and supporters also made small interest-free loans, a figure that is allowed by the electoral authorities, but their strength remained in donations and money from the group.
Laura Álvarez Zarnovski, treasurer of the PLP, explained that they sought help from public and private banks, but were not successful, so the total ¢170 million of expenses were acquired mainly from their resources and small loans that came out of their pockets. affiliates and candidates.
“There were small loans from militants from different cantons who said they wanted to lend us ¢500,000; From that figure onwards we accept them, there were people who said they wanted to lend to such a canton, it costs a lot for them to donate,” he explained.
The loans to the PLP were made by natural persons, to whom it was clarified in the contract that, in the event that the debt could not be honored due to not accessing political debt or any expense not being recognized by the TSE, that money would become a donation and thus the party would not be in default.
State electoral financing, known as political debt, covers expenses incurred in the campaign, including those incurred from the time the election is called and up to 45 days after election day. Also, expenses corresponding to training and political organization to which parties are entitled are redeemable with state financing.
Fabián Solano, president of the PAC, explained that the campaign they are carrying out in the seven cantons where they have candidates has been “austere” and is being financed with the party’s own resources, donations and loans from militants.
“We added a clause that says that the loan will be collectible only if the canton gains the right to the political debt, to prevent the party from going into debt if we do not gain the right to the debt resources,” said Solano.
Luz Mary Alpízar, deputy and president of the PPSD, commented that for this campaign there was no access to credit nor did they have the option of looking for a financier, since for municipal elections the sale of debt bonds is not allowed, so each candidate sought how to obtain donations.
“There is no party financing to cover municipal campaign expenses. Each canton must obtain what is necessary in the form of a donation, either in kind or in cash. There is a type of loan contract for working capital. The income obtained is recorded and used only in the canton that contributed it,” said Alpízar.
For its part, the PNG indicated that it has been financing the campaigns with part of political debt, donations and loans from party members.
2024-02-04 13:11:16
#parties #accessed #bank #loans #finance #municipal #campaign
