LatinNews Daily - 12 June 2020

* A group of economists convened by the Chilean government to audit the work of the finance ministry has tabled a proposal for the creation of a US$12bn fund to finance social programmes and economic reactivation plans over the next 24 months, as the country seeks to overcome the economic recession caused by the coronavirus (Covid-19) pandemic. Speaking before the congressional finance committee and members of the finance ministry, including Minister Ignacio Briones, six of the group of 16 economists presented their proposal. The so-called ‘Covid-19 fund’ would be managed separately from the budget, funded by transfers from sovereign wealth funds and new debt, and could help cover emergency spending including direct transfers to families, support for workers and companies, and extra public investment to help restart the economy. While stressing the importance of maintaining fiscal sustainability, the proposal also suggests increasing the value of the family emergency income (IFE), set up in May to help the most vulnerable during the pandemic, from the current Cl$65,000 (US$82) to between Cl$80,000 and Cl$90,000 per person.

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