The disastrous Cabildo Abierto project was approved: mortgage debt forgiveness

Last Monday, February 10, the approval of a bill introducing modifications to Law 20.237 (December 2023) was decreed in an extraordinary session in the Chamber of Deputies.

The objective of these modifications is to further expand the horizon of people whose debt will be forgiven, marking a clear milestone against contracts and legal security.

This issue has a long history, dating back to when the then-presidential candidates Manini (Cabildo Abierto) and Lacalle (Partido Nacional) adopted this cause for electoral reasons.

The debtors are people who bought homes assuming state mortgage loans and who, for various reasons, had to refinance them, leading to the accumulation of interest and surcharges.

The lobby considers this unfair and begins to demand a bailout funded by the rest of the population, which represents a clear affront to capitalism and contracts.

Taking advantage of this environment, the first bill was presented by Cabildo Abierto in 2021, culminating its legislative journey yesterday.

From now on, a precedent is set: not paying debts is fine, as long as a politician forgives them with someone else's money thinking it will buy your votes.