Get 40% Off
These stocks are up over 10% post earnings. Did you spot the buying opportunity? Our AI did.Read how

Chilean congress agrees to $12 billion emergency coronavirus plan

Published 06/14/2020, 11:58 AM
Updated 06/14/2020, 12:00 PM

By Aislinn Laing

SANTIAGO (Reuters) - Chile Finance Minister Ignacio Briones announced a fresh, two-year, $12 billion citizen support and economic stimulus package to overcome the effects of the coronavirus outbreak after reaching a cross-party agreement in the early hours of Sunday.

Briones said Chile was experiencing a "unique moment" in its history as it faces the toughest weeks of fighting the pandemic, and that the only way out of it was through working together to offer its citizens "a sign of hope."

The announcement comes after weeks of political infighting and criticism of the government's handling of the crisis by medical experts, as confirmed coronavirus cases per 100,000 citizens reached global levels only surpassed by small nations like Qatar.

On Saturday, Chile President Sebastian Pinera removed the health minister, Jaime Manalich, who had been criticized for failing to implement lockdowns sooner, and for changes to case and death reporting methodology.

Medical unions and members of the citizen advisory group convened by government said they hoped for a more "consensual style" and a change of strategy from the new minister, Enrique Paris. [nL1N2DQ06W]

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.

It will increase funding for local governments, civil society organizations and health services, and offers unemployment protection for parents and those who care for young children, Briones said.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

The minister added in a statement on Twitter that behind the plan was "a permanent source of employment and income for millions of families, ventures, projects and dreams."

The plan is the latest in a series announced by government adding up to around 5% of the country's gross domestic product (GDP) that also offered loans and tax breathers to small and medium-sized businesses.

Opposition groups have said the plans do not go far enough or reach enough of the people in direst need. Chile's far-left Democratic Revolution party, founded by leaders of the 2011 student protests, refused to agree to the latest plan.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.