Peru and Chile advance significant fiscal and market reforms

In Peru, Prime Minister Luis Galarreta defended the possibility of requesting a new supplementary credit to address pending budgetary needs and stalled public works. Galarreta argued that the previous administration left a “hole” in public accounts, whereas the current proposal aims to ensure the continuity of state services and investments. He emphasized that Peru’s macroeconomic conditions remain favorable, citing low debt levels, international financing conditions, and the autonomy of the Central Reserve Bank of Peru (BCRP) as factors that preserve economic stability.

In Chile, the Chamber of Deputies' Finance Commission is scheduled to vote on the Capital Markets Reform and Home Ownership Financing bill, known as MK4, on October 1. The project proposes the creation of the National Housing Fund (Fonavi), which could reach US$20 billion to facilitate mortgage credits of up to 6,000 UF. Additionally, the reform seeks to strengthen capital markets through measures such as eliminating VAT on financial service exports and expanding tax exemptions on capital gains.