Chile reinforces social and economic aid due to coronavirus with a new fund of 6,000 million dollars

The president of Chile, Sebastián Piñera, announced this Monday a new “Covid Fund” of 6,000 million dollars to finance social and economic aid to combat the crisis caused by the pandemic of coronavirus.

This fiscal program, which represents 2% of the country’s Gross Domestic Product (GDP), will be financed with the higher revenues that the State expects to achieve due to the increase in the price of copper – of which it is the largest producer in the world – and by the state savings system Economic and Social Stabilization Fund.

The new fund extends and strengthens the existing one, created by the Government last year for a value of 12,000 million dollars, for which the aid program established to date amounts to a total of 18,000 million dollars.

“The magnitude and extension of the pandemic and global recession continue to hit Chilean families hard, which makes it necessary to increase the support and help provided by our Social Protection Network, to reach more help and more homes that need it during the next months”said the president through a national chain.

Through this Social Protection Network, the Government has been delivering food baskets, aid to the most disadvantaged families, bonds to the middle class and unemployment benefits, among other aid, items that it now seeks to strengthen with this new contribution of 6,000 millions of dollars.

EMERGENCY FAMILY INCOME

The president announced an extension until next June of the so-called Emergency Family Income, intended for the most disadvantaged, with which it is intended to reach more than 9 million people in the country.

This aid will provide 100,000 pesos per month (about $ 140) for each member of the family group for those who live in sectors that have been in quarantine for 14 days or more, the amount being progressively lower for those who live in places with fewer sanitary restrictions.

SUPPORTING THE MIDDLE CLASS

The president also announced some modifications to the aid to the middle class that he unveiled at the beginning of the month and that establish a bonus of up to 500,000 pesos (about $ 700) for people who have incomes of up to 2 million pesos (about $ 2,790) .

In addition to this bonus, a complementary one will be delivered the following month that will range from 100,000 (about $ 140) to 250,000 (about $ 350), depending on the composition of the family.

The aid to the middle class also includes an interest-free loan, with a one-year grace period and payable in four annual installments, which may not exceed 5% of the worker’s annual income.

The amount that can be requested corresponds to 100% of the fall in formal income, with a maximum limit of 650,000 pesos (about $ 910) each time and can be requested up to three times.

A bond was also established for transporters (taxi drivers, bus drivers and school transporters that will reach 350,000 pesos (about $ 490) and they will also be able to opt for a solidarity loan of 320,000 pesos (about $ 450), which can be requested in up to 3 chances.

GREATER JOB PROTECTION AND SUPPORT FOR SMEs

The new aid package contemplates an increase in unemployment insurance benefits, allowing people who have lost or have suspended their work to be able to reapply for the maximum of this subsidy (70% of the lost salary).

In addition, other aid is contemplated, such as an extension until August of this year of 200,000 pesos per month (about $ 280) for each child under 2 years of age that the working mothers or fathers have.

In order to help more and better small and medium-sized companies and entrepreneurs in the sectors most affected by the pandemic, Piñera announced an increase of $ 200 million in entrepreneurship subsidies for these companies.

AID TO THE HEALTH NETWORK

Finally, the president revealed additional resources for 300 million dollars to strengthen the country’s primary health network, strengthen the testing, traceability and isolation program, and increase the purchase of vaccines against it. coronavirus.

The president’s announcements came on the same day that the authorities extended the total quarantines to more sectors of the country, reaching 74% of the population from Monday to Friday and 90% during weekends, when they will also be confined other points that are allowed mobility on business days.

Despite leading the vaccination process worldwide with 5.7 million inoculated with a first dose, Chile faces a second wave of infections as a result of the summer holidays and at this time more than 38,000 people are sick with the active virus and contagion capacity.