Chile’s Congress passes law allowing Central Bank to buy national Treasury debt

Chile’s Congress has approved a law to allow the Central Bank to buy bonds issued by the country’s treasury in the secondary market, potentially giving the bank added firepower to help offset fallout from the pandemic. The move represents a shift for Chile. Previously, the Central Bank was prohibited from acquiring debt issued by any state organization or from financing public spending through direct or indirect credit. Finance minister Ignacio Briones said in a statement that the measure was a “tool of exceptional use” that would help ensure the country was better placed to withstand future financial shocks.

Source: Reuters