Macroeconomy/Finance

Chilean Government seeks law allowing Central Bank to buy government bonds

Chile’s Government drafted a law to enable the Central Bank to buy bonds issued by the country’s treasury in the secondary market. The finance minister said that the Central Bank would be allowed to buy the state-issued debt in “exceptional circumstances” under newly drafted legislation. Chilean law currently prohibits the Central Bank from acquiring debt issued by any state organisation, or from financing public spending through direct or indirect credit.

Source: Reuters