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The Chilean Senate approves the law allowing funds to be withdrawn from the pension system due to the pandemic

The Chilean Senate approved the bill this Wednesday, which allows up to 10 percent of provisional funds to be withdrawn from Chile’s private pension system, the AFP system (pension fund administrators), without paying any taxes in the EU, within the framework of the pandemic State of emergency.

As the upper house reports on its Twitter account, the project has endorsed 29 new ones, 13 against and one abstention. The reform will now go to the Chilean Chamber of Deputies, where it was approved last week, where it is expected to be ratified and shipped.

The approval of the norm in the Senate has meant a new setback for the Chilean executive led by Sebastián Piñera, since this was achieved with the votes of the official political coalition Chile Vamos.

The Chilean Senate approves the law allowing funds to be withdrawn from the pension system due to the pandemic
The Chilean Senate approves the law allowing funds to be withdrawn from the pension system due to the pandemic

Before the vote, Interior Minister Gonzalo Blumel reiterated the government’s criticism of the initiative, claiming it was “an excuse for other purposes,” reports Radio Cooperativa.

Before the law was passed in the Chamber of Deputies, the government had made efforts to reconcile the votes of government-backed MPs, which it failed to achieve.

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