Chile: President Piñera Enacts Reform for Early Funds Retirement

Chile's President Sebastian Piñera Friday enacted in a private ceremony the Constitutional Reform that allows the Exceptional Withdrawal of Accumulated Individual Capitalization Funds.

RELATED:

Chile: Protests Against Minimum Sentence In Barra Rape Case

Although a ceremony was expected for this law's enactment, the president decided to do it in private. 

Chile's Finance Minister Ignacio Briones, General Secretariat of the Presidency Claudio Alvarado, and Labor Minister Fernando Arab were present at the ceremony.

"On Monday, the General Secretariat of the Presidency will submit the reform to the General Comptroller's Office for its approval," Piñera's administration said in a statement.

The Constitutional Reform project was approved by the Chilean Congress with 116 votes in favor, 28 against, and 5 abstentions.

This initiative will allow the withdrawal of 10 percent of the accumulated savings at the Pension Fund Administrators (AFP), a private mechanism created during the Augusto Pinochet dictatorship.

It was designed to help Chilean families cope with the economic crisis caused by the pandemic.

Once its legal route has been completed, the reform will come into effect on July 29.