Pandemic aid: Chilean Central Bank president said pension withdrawals threaten economic recovery

Mario Marcel said that the three 10 percent withdrawals approved have led to a "structural change in the country's economy" that consists of a "systematic weakening of the long-term capital market in national currency."

RIO DE JANEIRO, BRAZIL - The president of the Central Bank of Chile, Mario Marcel, warned Wednesday that early withdrawals from pension funds "currently represent the greatest threat to a solid and sustainable recovery from the economic crisis caused by Covid-19," at a time when Congress is debating for the fourth time whether to authorize the measure.

In a speech before a committee of the Chamber of Deputies, the head of the Chilean Central Bank said that this policy of redemptions leads to "further overheating of the economy, higher inflation, and severe financial imbalances."

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