LatinNews Daily - 10 July 2020

* Chile’s main stock market index, the IPSA, has fallen by 3.67% after the national chamber of deputies voted to legislate on a bill which would enable people to make a one-time partial withdrawal of up to 10% of their retirement funds, to help deal with the fallout of the coronavirus (Covid-19) pandemic. Among the biggest slides yesterday was that of Administradoras de Fondos de Pensiones (AFP) Habitat, one of Chile’s main pension fund managers, which fell by 5.02%. This response reflects the market view that the initiative may hinder a long-term substantial reform of the pension model, which has been hotly contested over recent years, and was a key driver behind the social unrest that broke out in October 2019. This is also the view of the government led by President Sebastián Piñera, for whom the vote was a significant setback.

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