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Treasury Announce Issuance Details, Government To Present Lithium Policy

CHILE
  • A little more colour on the earlier headline that the treasury is to sell as much as $15 Billion in bonds in 2023:
    • This will include financing of amortizations for ~$6.8b; new net debt would be ~$8.2b, according to a statement from the Finance Ministry. Some $12b would be in local currency (80%) and $3b in foreign currencies (20%).
  • Chile’s government delivered further concessions to its copper royalty bill on Tuesday, while stopping short of meeting industry demands to keep the effective tax rate in line with rival nations.
    • In two main changes announced by Finance Minister Mario Marcel, the royalty would be reduced if the sum of all taxes exceeds 50% of operating profit, while producers will be able to deduct organizational and start-up expenses. (BBG)
  • Separately, Chile's government will present its long-delayed national lithium policy in April and hopes it will generate significant investment during the second half of the decade, Economy Minister Nicolas Grau said on Tuesday.

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