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Fitch Says Uncertainties Will Persist Following Vote On Constitution

CHILE
  • Fitch Ratings have said that political uncertainties are expected persist in Chile regardless the outcome of the referendum about a new constitution.
    • Chile’s rating is unstable due to the political environment.
    • If approved, the new constitution will transform Chile from a business-friendly environment into a more socially focused country, affecting sovereign creditworthiness.
    • Potential issues include an increasing role of indigenous groups in new project approvals and changes to property rights, with unclear compensation if an asset is expropriated.
    • Fitch forecasts Chile GDP to grow 1.9% in 2022 and 0.5% in 2023.
  • Chile's SMA environmental regulator said on Tuesday it had issued a series of measures against a copper mine owned by Canada's Lundin Mining after a sinkhole opened up near one of the company's mines. (Mining Weekly)

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