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Senate Rejects Fourth Pension Withdrawal Bill

CHILE
  • Chile's senate rejected a proposal for a fourth round of early pension fund withdrawals, dealing a significant blow to the bill. (BBG)
  • The senate voted 24 in favour and 15 against, falling short of the three-fifths majority needed, amid concern the bill would stoke inflation that reached a 12-year high last month.
  • The proposal now goes to a mixed committee composed of senators and deputies before heading back to the floor of both chambers for fresh votes.
    • Markets are likely to breath a sigh of relief. While previous withdrawals from Chile's private pension system, totaling about $49 billion, have proved popular among voters, they have undermined the peso, stocks and bonds.

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