NEW YORK (Reuters) – Chile estimated to issue 12 $1 billion next year The biggest budget increases will be for social protection and science and technology, Finance Minister Mario Marcel told Reuters on Thursday. The overall balance will be much stronger than people think,” Marcel said, adding that most of this will be used to refinance the maturity issue.
The minister believes that Chile will soon Made
“We are particularly confident that inflation will be contained sooner than other countries,” he said, citing a start from mid-July 2021.
Pensions and Pesos
The Chilean Peso, like many other currencies, is under pressure from a stronger U.S. dollar, breaking through every 1, 000 The peso llar mark was the first in July last year.
Currently 944 The peso against the US dollar is currently down nearly 12% this year.
Marcel said in 100 and 150 exchange between pesos is due to uncertainty premiums soared in late 2019 when Chileans took to the streets amid the biggest social protests in decades, he said .
COVID-000 Pandemic and a flurry of votes in Chile, including a referendum rejecting a new constitution that would be significantly expanded Social benefits, helping to keep uncertainty high.
Marcel said a clear signal that another modest constitutional proposal, progress on tax reform and promising pension reform would help Reduce uncertainty.
Pension reform, expected to be brought to Congress in a few weeks, aims to expand basic benefits by some 30%, and increase employer contributions by 6%.
“The cost of pension reform should be 4% of (GDP) in the long run Between 5% and 5%,” Marcel said.
“It will take at least six years to face all this growth before it impacts employment. ”