shutdown-chile does it again

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shutdown-chile does it again

Post by admin » Mon Aug 17, 2015 8:10 pm

Another fine waist of chilean governent money on start-up chile, without a fix to the REAL limits for investment in chile.

http://mobile.reuters.com/article/idUSL1N10P1TF20150817

All the particpants are bitching about the lack of VC investment once they reach that critical point, well the VCs can not open a bank account, SPEND MONTHS FIGHTING TO GET BASIC IMMIGRATION OR WORK VISAS, AND get none of the support their wet behind the ears foreign start-ups get from the goverment. Guess what? Your start-up ecosystem will never, ever, be self-sustained let alone pay for it self.

Spend the money on chilean women, if you want to help chile. They are what makes this economy work.
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Re: shutdown-chile does it again

Post by admin » Mon Aug 17, 2015 8:35 pm

Mean while let me tell you a story i heard recently about an aquantance of mine and his attempt to help chile advance. A really, really sad story.

This " friend " (friend of a friend, had dinner once) is very wealthy, chilean, has many companies all over the world.

He sponsors a program / competion for young chilean executives just getting out of school to win an internship with his company outside chile and gain super international experience. Kind of things any mba would beg for from any school in the world just coming out 9f school.

The top winner, gets something like a two year all expense paid internship in new york, with a permanent job offer at the end. Runners up got various all expense paid trips to work for the company and other educational opertunities. Still super opertunity.

Costs to chilean goverment and tax payer = little to nothing.

Benfits to chile = priceless, to who cares one way or the other except for the winners. It matters to them. What do we care someone wanted to privatly advance yheir education with their own money.

Basicaly all the goverment was doing was promoting it and spreading the word among new graduates.

Well, one of bachelet's super wise and experienced minions killed the program.

The reason: "chile needs to keep its executives in the country".

Now, if you lean left, you might think 'well here is another capitalist pig exploiting chileans educated talent and robbing the country bla, bla, bla....'

The sponsor has, let's say more than a bit of lefty street cred. He was the economic minister under allende.

Yea. That is the real political problem with bachelet administration. It is not left or right political motives. It is reason, any reason or logic, is AWOL at all levels.
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Re: shutdown-chile does it again

Post by admin » Mon Aug 17, 2015 9:04 pm

Meanwhile, let me tell you anothher sad, sad, story, or two

Got a client. Super international consultants. They operate all over the world. They got a 2 million dollar, 6 month contract with one of the richest companies in the world, and promise of more to come once they get their corporate structure setup in chile.

Us and the clients, spend weeks begging santander or any bank in chile to open thrm an account. They dont need credit. They just need somewhere to park money to pay expenses.

Meanwhile, banco estado is spending millions on tv advertising offering bank accounts to teenagers.

Another client. Worth hundreds of millions of dollars, weeks begging for a bank account around chile so he can just piss money in to the economy. Lots and lots of paperwork.

None of the above were able to get an account without residency.

Meanwhile, banco estado is spending millions to offer accounts to teenagers with no money, no credit, and no legal standing to enter a legal contract (mom and dad has to sign).
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Re: shutdown-chile does it again

Post by El Presidente » Mon Aug 17, 2015 9:45 pm

These kind of stories interest me very much. How can an apparently advanced economy have such a backward-looking, sclerotic banking situation.

I remember hearing that this ridiculous banking situation in Chile has its roots in trying to deal with narco-money floating around South America. The bureaucracy and stringent rules put in place are meant to stop drug money freely flowing through the Chilean banking system. Does this sound right?

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Re: shutdown-chile does it again

Post by admin » Mon Aug 17, 2015 9:53 pm

No invthe 80s that was the original motive. Now itcos just absurd, outdated thinking.
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Re: shutdown-chile does it again

Post by amanaplan » Mon Aug 17, 2015 10:08 pm

Chilena friend of my wife works for Santander on the corporate side - not super high up, but recently got a secondment to their Madrid office - basically just one of their army of mid-ranking clerks I guess. Anyway, we were chewing the fat with her, and I was having a little moan about the perennial problem much discussed on this forum, in this thread and elsewhere, of the dysfunctional Chilean banks seemingly not wanting your business. Her attitude was that they were only interested in a 'certain' clientele, and she said (and I quote) "imagine if we gave an account to anyone".

I stopped the conversation there, because I didn't want to get into an argument with her and upset my wife, but I found it very interesting to hear the Chilean banking attitude summed up so neatly. In the UK (and Spain), Santander are a high street bank for the general public. They are not 'high end' - they are for Joe Public, and I think they would be very happy in general to open accounts for most of the public (within reason, I guess if you had a horrible credit history they might baulk). For some reason, banks in Chile have developed this culture that they're doing you a massive favour by opening an account, and you probably don't deserve one unless you live in the north-east of Santiago. And what's odd is that this is true even for an international bank (like Santander) that has moved into the Chilean market - they don't seem to be able to beat the snobbery and mistrust out of their Chilean employees.

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Re: shutdown-chile does it again

Post by amanaplan » Mon Aug 17, 2015 10:14 pm

El Presidente wrote:I remember hearing that this ridiculous banking situation in Chile has its roots in trying to deal with narco-money floating around South America. The bureaucracy and stringent rules put in place are meant to stop drug money freely flowing through the Chilean banking system. Does this sound right?
There's probably some truth to that, but I think Chilean culture being what it is they've kind of taken that idea and run with it. The same culture of snobbery and mistrust that gives us security guards putting bits of 'scotch' over your bags on the way into the supermarket (default assumption: everyone is a thief) no doubt embraced a rationale for making banking a privilege that can't be afforded to the great unwashed.

I mean there's money laundering in every country - that's kind of the point of it, it allows money to be moved internationally, and Chile is kind of on the periphery of the South American narco thing anyway. Other countries manage to both have money laundering controls, and the ability for people to open a bank account without a pituto.

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Re: shutdown-chile does it again

Post by admin » Tue Aug 18, 2015 7:31 am

Yea except, this....

Few years ago we went to the regional head quarters of banco estado. Met with the regional director. Told him we had several clients, worth better than 5 million u.s.

His reply, "we are a bank for the little old lady with her pension check".

He did not want the money either.
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Re: shutdown-chile does it again

Post by admin » Tue Aug 18, 2015 7:51 am

That is the banking issues.

What blows us away also is that a gringo with millions of dollars to invest in chile has to jump through more immigration hoops to get a visa than a poor purevian maid. We are not even talking about gringos that might invest. We have clients that already have invested, before they even applied for residency. Yet we get stupid frigen questions from the highschool graduates at immigration about silly things such do they have a job, or do they have their degree legalized, or they still need to prove the periodic source of income. As if they were going to be homeless on the street. It is the ' they dont need a job or a degree, they are just really frigen rich' thing they still can not understand.
Spencer Global Chile: Legal, relocation, and Investment assistance in Chile.
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From USA and outside Chile dial 1-917-727-5985 (U.S.), in Chile dial 65 2 42 1024 or by cell 747 97974.

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Re: shutdown-chile does it again

Post by Britkid » Tue Aug 18, 2015 9:06 am

admin wrote:Mean while let me tell you a story i heard recently about an aquantance of mine and his attempt to help chile advance. A really, really sad story.

The sponsor has, let's say more than a bit of lefty street cred. He was the economic minister under allende.
Hang on a minute...who do you mean here? Allende's first economic minister, Pedro Vuskovic Bravo, died in 1993, while his second, Carlos Matus, died in 1998. Sorry to be a pedant but I was literally just reading about the economics of 1970-3 this topic the other day.

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Re: shutdown-chile does it again

Post by Andres » Tue Aug 18, 2015 9:42 pm

admin wrote:All the particpants are bitching about the lack of VC investment once they reach that critical point, well the VCs can not open a bank account, SPEND MONTHS FIGHTING TO GET BASIC IMMIGRATION OR WORK VISAS, AND get none of the support their wet behind the ears foreign start-ups get from the goverment. Guess what? Your start-up ecosystem will never, ever, be self-sustained let alone pay for it self.
Yep.

I am small-fry, but would have invested hundreds of thousands of dollars and my expertise in Chile if the government in the slightest way had their sh*t together.

It took me more than a year to open a business bank account, and could only do so because I finally found a friend of a friend of a friend of my girlfriend who would use his pituto to enable me to open a bank account for my Chilean company.

By that time, some idiot f*uckwit in immigration violated the Chilean govt regulations by denying my permanent resident visa and some other idiot f*uckwits in customs refused to permit the import of goods subject to a free trade agreement in accordance with Chilean laws, regulations and oficios put in front of their noses. The goods were the basis of my ever-dwindling business options; dwindling because of the clear difficulty of starting and operating business without a lot of pituto.

And a Chilean defense company which sorely needed my project management and systems engineering expertise could not muster enough integrity to treat me fairly in the hiring process. (Which I guess does not matter because of the immigration idiot.)

So, in my case, Chile lost out on my investments and my expertise. Nice place to visit, or die. But nothing beyond that.
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Re: shutdown-chile does it again

Post by Space Cat » Wed Aug 19, 2015 12:38 am

Andres wrote:By that time, some idiot f*uckwit in immigration violated the Chilean govt regulations by denying my permanent resident visa
Is there any way to appeal against a decision like this one?

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