LatinNews Daily - 13 August 2020

* Chile’s Economy Minister Lucas Palacios has conceded on local radio station Universo that while the government was averse to the controversial pension withdrawal law enacted last month, it is “starting to have a positive impact on the economy and market outlook”. According to Palacios, the reform, which allows individuals to withdraw up to 10% of their mandatory pensions in order to mollify the effects of the coronavirus (Covid-19) pandemic, has a “costly trade-off, which is the reduction of pension funds”. However, the resulting “significant” liquidity injection should kickstart domestic consumption, which has been badly hit by the pandemic. Chile’s pensions superintendent reported that as of 12 August, some 8.6m people (79% of those signed up to the pensions system) have submitted withdrawal requests and over US$6.7bn has already been distributed.

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