Chilean lawmakers approve second pensions withdrawal
Chilean lawmakers on Thursday gave final approval to a bill that allows citizens to make a second withdrawal from pension funds so they can cope with the economic havoc wreaked by the coronavirus pandemic.
The bill, which passed its last legislative hurdle with a Senate vote late on Thursday, allows for another 10% withdrawal from Chile’s privately managed pension funds.
The measure was introduced by conservative President Sebastian Pinera’s government two weeks ago to head off a more comprehensive proposal from opposition lawmakers.
It got early Senate approval last week but it was significantly amended in congressional committees with a cap on who was eligible and the obligation that the money be repaid dropped, effectively removing the differences between the bills.
The government has argued against any withdrawals, saying they would reduce already low pension payouts and that citizens should rely on the government’s emergency coronavirus measures instead, which include spot payments and rent subsidies.
The first pensions withdrawal was approved, however, with cross-party support in July, with its impact on markets more limited than feared and giving the economy a bounce as people spent some of the $17.4 billion withdrawn.
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