Central Bank

Posted January 14th, 2014 by Tony. Comments Off on Central Bank.

Analyzing the 20 measures in the new stimulus plan economic shows that 9 of them are directly support financial firms, while the other 11 have an administrative goal since they are designed to improve and facilitate procedures for small and medium-sized enterprises. The new measures include the extension of up to three years, the time to reprogram the tax debts and the promotion of greater competition in the credit market. According to estimates by the Chilean Finance Minister, Andres Velasco: in our estimation, these 20 package could produce around US $3,600 million for additional additional private credit. Beyond of analyses that can be performed on them, it must be said that the new measures were well received by specialists in the subject. In a note signed by Magdalena Winter, Bernadette Aguirre and Fernando Vial in the site Chilean economy and business, reproduced the view of Jose Ramon Valente, Econsult Economist, who considered the measures: effective. In the sense that is needed to enter the area girl that things really happen. In that sense, I value make the task in detail to see where the credit is stagnating to eliminate those obstacles.

Although they are not so easy to understand, are super important, and that is positive. I also highlight the same concern that credit flows in the economy. It is something important. Along with the released in the month of January economic stimulus plan, measures to restore growth in the Chilean economy represent about 4.4% of Chilean GDP. Bachelet’s Government is not alone in this crusade by stimulating economic activity. The abrupt change in the local and international context, has allowed the Bank Central Chile carrying forward a flexible monetary policy through strong cuts in its benchmark interest rate. At its last meeting, the Committee on monetary policy of the Central Bank of Chile, cut its reference rate by 250 basis points to leave it at 2.25%.

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