Government announces US$500 million capitalization for BancoEstado focused on people, micro and small businesses
The initiative will let BancoEstado grow US$4,400 million in total loans in two years.
Santiago, November 15, 2019.- The Ministry of Finance announced today the sending to Congress of a bill for immediate discussion for an extraordinary US$500 million capitalization for BancoEstado.
The bill aims at strengthening the countercyclical role of BancoEstado in the midst of the challenging economic scenario. Under similar contexts, such as the financial crisis of 2009 and the economic slowdown of 2014, extraordinary capitalizations of US$500 and US$450 million, respectively, were approved.
“Expanding the credit capacity of Banco del Estado de Chile is vital in the current context of economic slowdown and weakening sales of smaller businesses as a result of events that have affected the usual working of the economic activity during the last weeks”, details the Ministry of Finance’s bill.
By injecting additional resources, BancoEstado undertakes placing a special focus on cooperating to preserve an adequate liquidity and fluidity of the financial system.
Furthermore, and understanding the important public, social and countercyclical role the bank plays, the bank will put special emphasis on funding micro, small and medium size businesses, as well as promoting mortgage credit for middle sectors and beneficiaries of housing subsidies and retail financing.
Upon this extraordinary capitalization, BancoEstado would grow US$4,400 million in total loans during the next two years, which would let it to continue fulfilling the social role to which the bank is focused.