The Central Bank of Chile has been requiring for a number of years that all loans to Chilean residents from abroad as well as most foreign equity investments be subject to the obligation to deposit with the Central Bank, on an interest-free basis, 30% of the amount involved for a period of one year or, alternatively, to pay an equivalent fee.
With a view to modifying the above requirement imposed to avoid a further appreciation of the Chilean peso against the US dollar, the Central Bank has decided to force exporters to repay all export credits with their export proceeds for a period not exceeding one year.
In addition, the Central Bank, to the same end, has decided not to authorize the extension of the repayment date of foreign loans which had not been subject to the compulsory deposit requirement.
Finally, the Central Bank imposed a fine on debtors who fail to purchase foreign currency at the original maturity dates to repay foreign loans. The fine is set at 4% of the sum involved.
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