The Chilean government has launched an initiative designed to help small businesses refinance their debts and rekindle investment. A US$2bn (Ј1.4bn) aid package will be the centrepiece of the scheme.
The measures were announced on 7th March 2001 by Chilean president Richard Lagos in an attempt to stimulate demands levels in the economy, which has been paralysed by pessimism since the recession of 1999 and an unemployment rate of 8.4%. Despite growth of 5% last year, consumer and business confidence remain weak. The recession of 1999 left many small and medium-sized businesses (which account for approximately 80% of unskilled and semi-skilled jobs in Chile) unable to repay huge debts taken on to survive the crisis.
The aid package follows last week’s decision by the central bank to cut base interest rates to 4%.
Source: Financial Times
