Eri Silva
Chile: Economy, Finance & Politics (2020-2021)
All coverage published by Brightwire
The dried bed lake of the the Aculeo Lagoon in Paine, Chile, Dec. 4, 2021 (AP Photo/Matias Delacroix)
Chilean truckers' union threatens indefinite strike, demands gov't response to violence
25 Aug 2020
The Chilean truckers' union CNTC is threatening to strike indefinitely starting Thursday if the government does not implement new laws to crack down on violence against truckers and increase protections, the union said in a release.
Union President Sergio Perez said they will not be blocking supply roads but will stop working nationwide, according to Cooperativa.
The demands follow an arson attack on a truck that left a child wounded in the Araucania region. No one took credit for the attack but the region has been facing violence due to drug trafficking and conflicts with Indigenous communities.
Chilean President Sebastian Pinera said the government would push to "find and punish the terrorists," responsible for the attack, Reuters reported.
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Chileans take part in anti-migrant protests in the North, burning the belongings of Venezuelan migrants
29 Sept 2021 (updated Oct 5 2021)
Around 5,000 residents of Iquique marched against undocumented migrants and alleged lacking border control on Saturday, ending with a group burning the belongings of homeless Venezuelan migrants, El Pais reported.
The Inter-American Commission on Human Rights (IACHR) condemned the “violent, xenophobic act" that violate the human rights of migrants.
Protesters were seen shouting anti-immigrant slogans and singing the national anthem. Iquique resident Juana Rodriguez told Reuters that many locals accuse migrants of stealing jobs and asking for handouts.
A few days earlier, on Sep 24th, the police had evicted about 100 mostly-Venezuelan migrants from the city’s public plaza without a relocation option, according to the IACHR.
Chile, one of the wealthiest countries in the region, has seen an influx in unauthorized entries by Venezuelans and Haitians at its border with Bolivia and Peru.
Demonstrators burn the belongings of Venezuelan migrants from an encampment during an anti-migrant protest in Iquique, Chile, Sept 25, 2021. (Reuters/Alex Diaz)
Chilean Central Bank updates economic forecast for 2020
09 Dec 2020
Chile's Central Bank forecasted the economy will contract 5.75-6.25% this year compared to the 4.5-5.5% forecasted in September, it said in a recent policy report.
The report highlighted recent signs of economic recovery from the pandemic including an expected increase in consumption, especially in imported goods, fueled by the holiday season and the second 10% withdrawal from pension accounts.
However, it warned of a possible negative impact from reinstating quarantine measures in Santiago, "but it may also reduce the risk of more drastic actions in the future," the report said.
GDP is expected to expand 5.5-6.5% and return to levels seen before the 2019 social unrest in 2022.
Inflation is predicted to reach near the center of the tolerance range set by the bank by year-end at 2.8%, compared to the previous forecast of 2.4%.
Chile's Interior Minister resigns after Lower House decries handling of protests
04 Nov 2020
Chile's Interior Minister Víctor Perez resigned after the Lower House agreed to advance a "constitutional accusation" alleging he unjustly applied the law due to political bias.
He allegedly allowed police officers to use excessive force during the country’s social unrest while not using any force during a strike by truckers demanding government protections following a series of attacks largely blamed on militarized Indigenous groups.
"I trust that the honorable senators will reject the accusation," said President Sebastian Pinera, defending his third appointment as interior minister since taking office. He named Undersecretary Juan Francisco Galli to take Perez's place on an interim basis.
"This is a political decision to cause injury and harm to the government," Perez said. If found guilty by the Senate, he would be disqualified from holding public office for five years.
Chile announces new financial aid package for the middle class
11 March 2021
Chile's President Sebastian Pinera announced a financial aid package to middle-class households whose income was affected by the pandemic, including a one-time bonus and a favorable loan offer.
The middle class bonus will be between CLP 400,000-CLP 600,000 (USD 561-841) and will include certain low income formal workers who do not need to demonstrate a drop in income.
The "solidarity loan" will be denominated in inflation-adjusted UF units with a 0% interest rate and a one-year grace period. The loan amount may not exceed 5% of the workers annual income.
The government will also begin a new phase of rent subsidies for up to CLP 250,000 each.
Fabiola Campillai, who lost sight in both eyes amid police repression during protests in Oct 2019, speaks with reporters in Santiago, Chile, July 2, 2021. (AP Photo/Esteban Felix)
Chilean environmental groups accuse AES Andes of violating regulatory requirements
16 June 2021
Local environmental groups in the Quintero-Puchuncaví area of Chile are pushing for AES Andes to develop an Environmental Impact Study (EIA) for the planned conversion of one of its Ventanas coal-fired plants into a desalination plant, El Mostrador reported.
The EIA would require AES Andes outline the desalination plant’s possible harm to marine life, considering it would dump salt into the Quintero Bay, and provide remediation measures in order to gain regulatory approval.
The environmental groups accuse AES Andes of intentionally dividing the project into three parts within its original regulatory filing in order to avoid requirements for an EIA.
The new desalination plant would extend the useful life of AES Andes’ Ventanas complex by allowing the company to sell any fresh water not used internally.
Chile’s environmental agency SME has also called on citizens to voice their concerns over the project considering the importance of artisanal fishing and tourism in the local economy.
Chilean banks proposing to continue dividend payments despite market uncertainty
25 March 2020
Multiple banks are proposing to disperse around 30-60% of their 2019 profits as dividends despite warnings from Chile's central bank to be cautious with dividends during the market downturned caused by the coronavirus pandemic, Diario Financiero reported.
Santander has proposed to allot 30% as dividends, Banco de Credito e Inversiones proposed 35.17%, Banco falabella 30% and Banco de Chile 59% — all will be voted on during shareholder meetings in April.
On March 9, Itau Chile distributed its entire 2019 profits before the warning was released, allotting 30% or COP 39 billion to dividend payments. While BancoEstado disbursed its entire COP 362 billion in profits to the treasury, allowing the amount to be used by the government in relief efforts.
Chile declared agricultural emergency in four regions as drought progresses
27 Aug 2021
Chile's Agricultural Ministry declared an agricultural emergency in four provinces after rainfall deficits reached between 62-80% in July compared to historical averages.
Coquimbo, Valparaiso, O'Higgins and Maule join Los Lagos in the list of provinces that will receive resources from the newly-formed CLP 8 billion (USD 10 million) fund to support farmers.
A new study in the Journal of Climate states a patch of warm water east of New Zealand known as the “Southern Blob” is driving Chile’s 13-year drought with human-driven climate likely amplifying and prolonging its effect. "This is undoubtedly a structural change and as a country we not only have to have resources for immediate measures, but also for medium and long term," Agricultural Minister Maria Emilia Undurraga said.
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