IMF criticizes third AFP withdrawal

The IMF stated that the project for a third withdrawal of 10% of pension funds that is advancing in Chile's Congress is unnecessary, inappropriate and deteriorates the country's pension system. According to the director of the Western Hemisphere in the IMF, the organisation estimates "that a third withdrawal from the pension fund is not necessary and is not the appropriate vehicle to continue deteriorating a structural factor in the pension system."

Chile successfully issued $1.5 bn of sustainability bonds

The Republic of Chile has successfully issued $1.5 billion of sustainability bonds. This is Chile’s first sustainability bonds issuance and first Formosa bond, and the Formosa market’s first sustainability bond transaction by a foreign issuer.

Chile’s Central Bank projects a 3.2% inflation for 2021

The Central Bank projects a 3.2% rise for the end of 2021. There are no significant changes in sight for 2022 and 2023. Chile's Gross Domestic Product (GDP) is expected to increase by 6% this year. Analysts once again upped their projections for 2021 from last month's 5.3%. It was the fifth such increase, according to the Economic Expectations Survey released by Chile's Central Bank.

81% of food pensions payment are up to date, $398.5 mn has been paid

81% of liquidations for food debts are already up to date, a process that had already mobilised $398.5 million, according to the Superintendency of Pensions (SP). As of last week the system as a whole had received a total of 302,169 settlements for maintenance debts from the family courts, of which 244,640 have already been paid.

Santander enters alliance with Gallagher Chile to expand coverage offered to companies

Santander has entered an alliance with Gallagher Chile, an insurance and reinsurance broker. The reason for the alliance is to expand the coverage offered to companies that are part of its portfolio, particularly its corporate and large companies.

92% of Chileans want to continue to work remotely, even after the pandemic

After the pandemic, 92% of Chileans say they want to continue to work, at least partially, from home. This is revealed by a study carried out by Boston Consulting Group (BCG), The Network worldwide with the support of Laborum.com in Chile. According to the study, 65% of Chileans prefer to opt for a hybrid, remote and face-to-face model. Meanwhile, 27% of Chileans indicated that they would switch to a completely remote model if could.

Unemployment rose to 10.3% in December-February quarter

The unemployment rate in Chile was 10.3% during the December 2020-February 2021 quarter, according to the National Statistics Institute of Chile (INE). The figure implied an increase of 2.5 percentage points in twelve months, as a result of the reduction of the labour force (-7.4%) lower than the decrease presented by the employed (-9.9%).

President Piñera signed into law $6 billion economic aid package

President Sebastián Piñera signed into law an economic aid package for the middle class that includes the delivery of a bonus and an increase in the coverage of the Emergency Family Income (IFE). The total cost of both measures is $6 billion.

Chile’s copper producttion reached 425,500 tonnes, its lowest level in two years

Chile’s copper production fell to its lowest monthly production level for two years as output reached 425,500 tonnes, according to state copper agency Cochilco, 6.9% lower than the 457,200t recorded in January and 5% down on the 448,000t in February 2020.

Fitch rates Chile’s 2053 $1.5 bn sustainability bonds ‘A-‘

Fitch Ratings has assigned an 'A-' rating to Chile's $1.5 billion notes maturing April 15, 2053. The notes have a coupon of 3.5%. Chile issued the bonds in accordance with its Sustainable Bond Framework, and proceeds will be used to fund projects that qualify as eligible "green" and "social" expenditures.