The Chile Economy, Social Crisis and Virus Impact

National Crisis, Emergencies, and Natural Disasters in Chile; including the experiences of Chile Forum Members have shared in current and in past crisis, as they have assisted each other and Chile. Things will always go wrong. It is how you deal with it that counts, and that starts with information. When things go wrong, this is the place to come to exchange information about what is going on in Chile.
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RuneTheChookcha
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Re: The Chile Economy, Social Crisis and Virus Impact

Post by RuneTheChookcha » Wed Jul 01, 2020 2:55 pm

{ edited out by the poster }

RuneTheChookcha
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Re: The Chile Economy, Social Crisis and Virus Impact

Post by RuneTheChookcha » Wed Jul 01, 2020 3:00 pm

RuneTheChookcha wrote:
Tue Jun 30, 2020 5:01 pm
"The Federation of Microbus Drivers of the commune of Valparaíso announced the cessation of its functions as of Wednesday, July 1."

https://www.biobiochile.cl/noticias/nac ... ulio.shtml
"In an interview with Radio Bío Bío, David Pérez, president of the Federation of Drivers of Valparaíso, pointed out that of the 13 lines that would stop, only two are working with four and three machines.

https://www.biobiochile.cl/noticias/nac ... ntos.shtml

Out of my window, I can watch 3 lines of micro, namely 506, 507, 509, and the traffic is usually quite normal. Today, there was only 1 or 2 micros passing by, so it seems that the line "506" is one of the two operational city-wide.

UPDATE:

"The Rural Bus Association announced a stoppage of transport in the Maule, O'Higgins and Valparaíso region, starting this Wednesday....

...After a prolonged meeting, leaders of the rural bus microbusers in Maule confirmed the cessation of activities indefinitely."

https://www.biobiochile.cl/noticias/nac ... ores.shtml

mem
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Re: The Chile Economy, Social Crisis and Virus Impact

Post by mem » Thu Jul 02, 2020 11:40 am

RuneTheChookcha wrote:
Tue Jun 30, 2020 5:14 pm
“Eco Camping La Palmera” near Vicuña closed, after stating on their Facebook that "covid-19 is a farce", and "a scam by WHO".

https://www.biobiochile.cl/noticias/nac ... arsa.shtml

Yesterday I was following a long (100+ comments) discussion on their social media page, trying to better understand the argument of their supporters, and opponents.
Article seemed to say the guy was only open for foreigners

But how could there be tourist foreigners? Isn't Chile still not allowing people into the country on tourist visas?

I can't imagine there are enough tourists "stuck" in the country from before the lockdown to warrant opening a camping site for them?

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Re: The Chile Economy, Social Crisis and Virus Impact

Post by admin » Thu Jul 02, 2020 12:12 pm

mem wrote:
Thu Jul 02, 2020 11:40 am
RuneTheChookcha wrote:
Tue Jun 30, 2020 5:14 pm
“Eco Camping La Palmera” near Vicuña closed, after stating on their Facebook that "covid-19 is a farce", and "a scam by WHO".

https://www.biobiochile.cl/noticias/nac ... arsa.shtml

Yesterday I was following a long (100+ comments) discussion on their social media page, trying to better understand the argument of their supporters, and opponents.
Article seemed to say the guy was only open for foreigners

But how could there be tourist foreigners? Isn't Chile still not allowing people into the country on tourist visas?

I can't imagine there are enough tourists "stuck" in the country from before the lockdown to warrant opening a camping site for them?
The guy has a bunch of European campers inside his campground. The news was showing a bunch of those big European Mercedes touring campers. likely trapped here when the boarders closed doing the run to the tip of south America.
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tiagoabner
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Re: The Chile Economy, Social Crisis and Virus Impact

Post by tiagoabner » Wed Jul 08, 2020 1:13 pm

There's a vote going on in Congress today for a project that would allow people to withdraw 10% of their retirement/AFP savings:

https://www.24horas.cl/coronavirus/dipu ... fp-4311786

The minimum withdrawal amount would be 35UF (roughly USD $1,250) and the maximum amount would be 150 UF (roughly USD $5,500). The withdrawals would be done in two payments and it seems that people with less than 35UF saved would be able to withdraw their whole savings (although I'm not sure on this one, the article is a bit ambiguous in terms of wording).

The article mentioned that the employers and the government would be contributing to refill people's retirement accounts over time, although I couldn't find more info about that. I'm trying to find a link to the proposal to read more.

What are your thoughts on this matter?
I'm NOT your lawyer, accountant or financial planner. All information at this post should be considered for your entertainment only. Consult a professional before making a decision regarding whatever topic was mentioned in this post.

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Re: The Chile Economy, Social Crisis and Virus Impact

Post by admin » Wed Jul 08, 2020 1:46 pm

tiagoabner wrote:
Wed Jul 08, 2020 1:13 pm
There's a vote going on in Congress today for a project that would allow people to withdraw 10% of their retirement/AFP savings:

https://www.24horas.cl/coronavirus/dipu ... fp-4311786

The minimum withdrawal amount would be 35UF (roughly USD $1,250) and the maximum amount would be 150 UF (roughly USD $5,500). The withdrawals would be done in two payments and it seems that people with less than 35UF saved would be able to withdraw their whole savings (although I'm not sure on this one, the article is a bit ambiguous in terms of wording).

The article mentioned that the employers and the government would be contributing to refill people's retirement accounts over time, although I couldn't find more info about that. I'm trying to find a link to the proposal to read more.

What are your thoughts on this matter?
What I seen going around was that around 3 million Chileans would be eligible to withdraw their entire AFP at those levels.

Now the AFP system is crap, but as no one in the congress or the government seems to want to create a better one, that is a massive future government / social bill coming down the pipe in the years to come. Millions of Chileans are going to get "bread today", in exchange for extreme poverty tomorrow.

The hardest hit will likely be the younger people that are only starting to work and contribute to AFP. Coming out of a multi-year recession, possibly with no higher education due to the disruption from the social crisis / pandemic, etc, etc, and now they are emptying their AFP account. A few million pesos does not sound like much, but compound that over 50 years.

Oh, and it has got to be just the most perfect time ever to withdraw money from any long-term investment account. Let the pandemic beat down all the investments to record historical lows, then all of sudden remove opposition to letting people withdraw from their retirement account. I am sure the big market players thank them for their donation.
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Re: The Chile Economy, Social Crisis and Virus Impact

Post by admin » Wed Jul 08, 2020 1:56 pm

That said, personally, if they do pass it, I am taking every peso I can out of it and dumping it directly in to some much, much better investments.
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El Presidente
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Re: The Chile Economy, Social Crisis and Virus Impact

Post by El Presidente » Wed Jul 08, 2020 2:01 pm

Admin, I think you summed it up pretty well. I will take as many pesos as I can away from the incompetent and greedy fingers of the AFPs managers while cognizant of the fact that this will be a huge problem for Chile in the future. Así es Chile, no?
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Re: The Chile Economy, Social Crisis and Virus Impact

Post by GAminer » Wed Jul 08, 2020 2:43 pm

admin wrote:
Wed Jul 08, 2020 1:56 pm
That said, personally, if they do pass it, I am taking every peso I can out of it and dumping it directly in to some much, much better investments.

Will perm residents be able to withdraw as well?

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Re: The Chile Economy, Social Crisis and Virus Impact

Post by tiagoabner » Wed Jul 08, 2020 6:36 pm

So, the plot thickens:

https://www.biobiochile.cl/noticias/nac ... -afp.shtml

The government has offered to improve their new support program targeted to the medium (and low) classes/income earners. The opposition doesn't have enough votes to pass the 10% AFP withdrawal bill on their own, but some Chile Vamos congressmen, who are part of Piñera's support group, have been speaking out about voting in favor of the bill.

My read on that article is that the government doesn't want people to take any money out of their AFP accounts to avoid setting a legal precedent.
I'm NOT your lawyer, accountant or financial planner. All information at this post should be considered for your entertainment only. Consult a professional before making a decision regarding whatever topic was mentioned in this post.

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tiagoabner
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Re: The Chile Economy, Social Crisis and Virus Impact

Post by tiagoabner » Wed Jul 08, 2020 9:55 pm

The AFP withdrawal law passed, some government congressmen voted for it:

https://amp.24horas.cl/coronavirus/dipu ... fp-4312095

There is a vague clause that claims that "employers and the government will contribute to make up for the funds withdrawn". As typical of Chilean laws, it's most likely intentionally vague.
I'm NOT your lawyer, accountant or financial planner. All information at this post should be considered for your entertainment only. Consult a professional before making a decision regarding whatever topic was mentioned in this post.

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Re: The Chile Economy, Social Crisis and Virus Impact

Post by admin » Thu Jul 09, 2020 9:39 am

GAminer wrote:
Wed Jul 08, 2020 2:43 pm
admin wrote:
Wed Jul 08, 2020 1:56 pm
That said, personally, if they do pass it, I am taking every peso I can out of it and dumping it directly in to some much, much better investments.

Will perm residents be able to withdraw as well?
yes
Spencer Global Chile: Legal, relocation, and Investment assistance in Chile.
For more information visit: https://www.spencerglobal.com

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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