Chile will tap sovereign savings and sell bonds to fund USD 4 billion in spending as the credit crisis and slumping export demand stifles growth. Finance Minister Andres Velasco said the government may offer both domestic and foreign bonds to help finance the plan. The package, which the government said may lead to the first deficit in six years, includes increased infrastructure spending, tax cuts and USD 1 billion for state-owned copper producer Codelco. Chile will tap the USD 22 billion in cash it invested in funds overseas as the copper prices soared to a record in 2008. Copper tumbled 54 percent last year as a global recession battered raw material demand. (Bloomberg)

About the author

  • Devex Editor

    Thanks a lot for your interest in Devex News. To share news and views, story ideas and press releases, please email We look forward to hearing from you.