September 30, 2020 |
Chile’s powerful pension fund administrators (known as AFPs) are the lifeblood of the country’s financial system. With assets worth CLP164 trillion (US$210 billion) at the end of July (equivalent to roughly 75% of gross domestic product), no one stands taller. Last year, AFPs owned almost 7% of the shares on the Santiago Stock Exchange and two-thirds of government bonds.
That visibility also leaves them politically prone, especially as Chile’s pensions system has yet to deliver Chileans with the comfortable retirements promised since privatization four decades ago.
Almost two million people have been thrown out of work since the COVID-19 outbreak began. They are reliant on unemployment insur
The fallout from the pandemic and huge withdrawals from Chile’s pensions fund have kept corporate issuers on their toes