Chile : Selected Issues Paper.

Format:

Book

Government document

Author/Creator:

International Monetary Fund. Western Hemisphere Department.

Series:

IMF Staff Country Reports; Country Report ; No. 2014/219

IMF Staff Country Reports

Language:

English

Subjects (All):

Banks and banking--Chile.

Banks and banking.

Fiscal policy--Chile.

Fiscal policy.

Investments--Chile.

Investments.

Economic development--Chile.

Economic development.

Chile--Economic policy.

Chile.

Physical Description:

1 online resource (62 p.)

Place of Publication:

Washington, D.C. : International Monetary Fund, 2014.

Language Note:

English

Summary:

This Selected Issues paper on Chile seeks to explain why foreign ownership of locally issued sovereign bonds is so low in Chile and its implications. The low foreign ownership seems to be the result of a combination of macroeconomic, regulatory, and technical factors. The Financial Stability Report discusses the issue, and points to the tax on capital gains, costs for custody of securities and other administrative costs, and the relatively small size of the sovereign bond market as the reasons. Our study also finds that a combination of factors contributed to the low foreign ownership, including a moderate supply of sovereign bonds shadowed by strong local demand, illiquid secondary market, tax and administrative burden, the dominance of inflation-indexed bonds, and inconvenience and potential risks associated with foreign exchange transactions. The small size of the market for nominal bonds, the lack of a liquid secondary market, the previous tax regime and existing administrative burden, and transaction costs in the foreign exchange market seem to be the main reasons.

Contents:

""Cover""; ""CONTENTS""; ""WHY FOREIGN OWNERSHIP OF LOCALLY ISSUED SOVEREIGN BONDS IS SO LOW IN CHILE""; ""A. Introduction""; ""B. Possible explanations of low foreign ownership of local sovereign bonds""; ""C. Implications""; ""D. Concluding remarks""; ""References""; ""CHILE�S EXPERIENCE WITH INCLUSIVE GROWTH""; ""A. Introduction""; ""B. Inclusive growth: trends""; ""C. Social policy: progress""; ""D. Remaining challenges and policy options""; ""E. Concluding remarks""; ""References""; ""BOX""; ""1. Definitions of Key Concepts""; ""FIGURES""; ""1. Income Per Capita and Poverty""

""2. Income Inequality""""3. Social Mobility and Labor Market Equity""; ""4. Public Social Spending and Tax-Transfer System""; ""CHILE�S TAX SYSTEM AND THE 2014 TAX REFORM""; ""A. Background""; ""B. Overview of tax design principles""; ""C. Chile�s current tax system""; ""D. Government�s tax reform""; ""E. Concluding remarks""; ""References""; ""ANNEX""; ""I. Chile�s Full Integration Tax System""; ""CHILEAN BANKS� LOAN TO DEPOSITS RATIO""; ""A. Introduction""; ""B. Institutional depositors""; ""C. Asset side vs. liability side""; ""D. Individual Chilean banks""

""E. Liquidity regulation""""References""; ""ANNEXES""; ""I. Data""; ""II. Broader Cross-Country Comparison""; ""III. NSFR Estimation""; ""CHILE�S INSURANCE SECTOR""; ""A. Background""; ""B. Investment and profitability""; ""C. Risks""; ""D. Capital analysis""; ""E. Supervision and regulation""; ""References""

Notes:

Description based upon print version of record.

Includes bibliographical references.

Description based on online resource; title from PDF cover (ebrary, viewed August 29, 2014).

ISBN:

9781484316450

1484316452

9781498345101

1498345107

9781498394543

149839454X

OCLC:

889674693