translated from Spanish: Senator Lagos Weber presents draft deferment for credits: “We propose the immediate postponement of automatic and widespread credit fees”

Publicly, and through a letter to the director published in conjunction with former Minister of Finance Rodrigo Valdés, on Friday in the newspaper El Mercurio, PPD Senator Ricardo Lagos Weber, presented a proposal that aims to ease the pockets of many Chilean families. Following the various announcements made during the last few days by different banks, coupled with the uncertainty generated in the face of the lack of clarity of the mechanisms that these entities will use for the subsequent collection after the postponement of their payments, the Parliament indicated as an alternative, an “immediate and widespread” postponement of any type of commercial or bank credit and would be automatically effective.
In this regard, the senator for the Valparaiso region, noted that “in the face of the Coronavirus pandemic, measures have been introduced that seek social isolation, and this has an impact, among other aspects, on the progress of the economy, as soon as it cannot be met businesses can’t produce, citizens can’t consume as they should be, and besides, what has an impact on incomes and the number of people who have lost their jobs,” he said.
In this regard Lagos Weber added that “for these purposes, I have no doubt that thick, robust measures will continue to be taken to assist many Chilean families and informal workers, and as long as those measures that we know are being taken are working, we propose in the short term and with immediate effect, an automatic and widespread postponement of credit quotas, for two months and with immediate effect. It would be similar to having a long Sunday of two months, for debt repayment purposes. Conditions must include the interest rate of the initial contract and be paid at the end of the respective fee schedule,” he said.
He clarified, “This means that the next two installments of consumer, mortgage or commercial loans, can be put at the end of the due process, on the same terms as the current one, and automatically, without having to renegotiate anything, without cancelling stamp and stamp, or have a new fee set, etc. This is going to be a restrictive agreement for everyone; the Financial Market Commission must provide regulatory facilities and the Central Bank of Chile provide liquidity for this to materialize in the short term.”

Original source in Spanish