Category: Public policy

Information related to political affairs that have an impact on Chile’s economic development.

Ministry of Finance announces new tax measures to support SMEs and companies

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The Ministry of Finance announced new tax measures, as part of initiatives to support SMEs and companies hit by economic crisis caused by the pandemic. One of these measures includes the extension of the suspension of Provisional Monthly Payments (PPM) during the months of July, August and September, for all companies that register a decline in gross income equal to or greater than 30% for the January-May 2020 period, compared to the same period last year.

Chile cuts salaries to 693 members of its own government by up to 25%

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The government of Chile has cut the salaries of 693 of its members. The cuts ranged from 1% to 25%. President Piñera’s salary was cut by 10%, while 55 Members of The House, 43 Senators and 24 Ministers had their salaries cut by 25%. The President has set up a special Advisory Board (Consejo de Alta Dirección Pública) to take on the job of coming up with the percentage cuts to make sure that it would not be considered a conflict-of-interest. If the president signs the off on this new measure, it would allow for additional cuts for around 10,000 public servants’ salaries.

Treasury introduces changes to Fogape regulations

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The Official Gazette published a series of modifications made by the Ministry of Finance to the regulations of the Guarantee Fund for Small Business Owners (Fogape), with the aim of improving the delivery of credits in the midst of COVID-19. The main changes introduced are the reduction of the deductible and the extension of guarantees for small businesses.

Government may veto basic services project and re-enter Congress

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The congress-approved project which seeks to benefit customers of basic services, avoiding cuts for non-payment in water, electricity, gas by network and telecommunications accounts, has been delayed due to controversy. As a result, the only options are to enact it or veto it. PULSO projects that the government will veto the basic services project and return it to Congress with various qualms.

Chilean Government seeks law allowing Central Bank to buy government bonds

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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.

Senate approves aid project for independent workers affected by pandemic

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By 37 votes in favor, 1 against and 3 abstentions, the Senate chamber approved the modifications introduced to the bill that establishes a benefit for independent workers who have been affected by the pandemic. This initiative circumvented its third and final legislative process, with which it was dispatched from Congress and is ready to become law. The initiative increases the subsidy to CH$100,000 ($124.75).

Chile says copper miners complying with sanitary measures amid outbreak

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A Chilean regulator dismissed the concerns voiced by union workers that mining companies were failing to enforce sanitary measures to combat the spread of the coronavirus, calling mine adherence to the restrictions “adequate.” Chile´s Geology and Mining Service (Sernageomin) told Reuters in an emailed statement it had carried out 4,299 inspections at various mining sites throughout the world´s top copper producer since the outbreak began in mid-March with positive results.

Chilean congress agrees to $12 billion emergency coronavirus plan

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Chilean Finance Minister Ignacio Briones announced a fresh, two-year, $12 billion citizen support and economic stimulus package to overcome the effects of the pandemic. The economic plan, funded by a mix of budget reallocations, sovereign funds and debt issuance, includes bolstered emergency benefits for Chile’s most vulnerable families from payments of 65,000 Chilean pesos to 100,000 ($126) per person.