Chile’s Ministry of Finance reports committee approval of capital market and home financing reform bill

Chile’s Ministry of Finance reported that the Chamber of Deputies’ Finance Committee approved the capital market and home financing reform bill and sent it to the full chamber. The proposal contains more than 30 measures covering access to homeownership, business financing, financial market modernization and Chile’s role as a regional financial center. Agreements between the government and lawmakers resulted in amendments to the bill during committee scrutiny. The housing measures would create a National Housing Fund, administered by BancoEstado, and a Voluntary Housing Savings scheme offering a state bonus to supplement savings for a first home down payment. Government amendments sharpen the fund’s focus on purchasing a single residential property, strengthen supervision and evaluation, and allow greater participation by private capital. Changes to the savings scheme refine how the state bonus would be delivered and allow people with existing housing savings to qualify, subject to the eligibility requirements. The remaining measures seek to broaden financing options for businesses of different sizes and simplify financial market procedures while updating regulation. To support Chile’s development as a regional financial center, the bill would remove regulatory and tax barriers and introduce a venture capital framework and a regime for holding companies. The proposal remains in its first legislative stage and will proceed to the Senate if approved by the full Chamber of Deputies.