translated from Spanish: The Sofofa acknowledges that it considers a model of nationalization to rescue companies: “Some minute we will have to discuss that bridge”

The president of the Fabril Development Society (SOFOFA) Bernardo Larraín Matte, admitted that the business guild he represents does not rule out supporting a model of nationalization for some companies as part of the assistance that the state could provide for address the consequences of the Covid-19 pandemic
“In these crises that are unique in intensity and characteristics, you have to be very pragmatic and you have to put all the instruments on the table. I don’t think any should be ruled out,” Larraín told Cooperative radio.
The employer explained that “the priority is to over-invest in the health emergency, in liquidity for SMEs, to over-invest in employment protection. The issue of large companies that are struggling with liquidity, the concept is a bridge, a modern bridge, that does not benefit shareholders, that protects employment, and all the instruments that have been implemented in the world we must discuss them,” he said.
Larraín Matte recalled that similar instruments were used for the 2008 financial crisis. “there have been instruments in the 2008 crisis where transient bridges were laid, where stocks and actions were put in guarantee, when the company left (from the crisis) the state more than rescovered the investment, because in good times they could be returned those actions at good value.”
In that regard, Larraín insisted that they will not be closed to an exit that may seem like the nationalization of companies. “You have to be pragmatic, you don’t have to be ideological, you don’t have to have dogmas, you don’t have to be purist, and the relevant challenge is that SMEs, companies, from sectors as impacted as trade, services, hospitality, airlines, at some minute we’re going to have to discuss that bridge,” he said.
 

Original source in Spanish