We invite you to read the column written by our partner Álvaro Rosenblut on the opportunities for economic revitalization presented by the proposed capital markets reform.
A dynamic and deep capital market is the most effective tool for transforming savings into productive investment and revitalizing growth.
After more than a decade without any fundamental modernization of our financial system, the introduction of the capital markets reform bill—scheduled for September 7—is a step in the right direction.
In a context where the Chilean economy urgently needs to regain momentum, revitalizing the depth, liquidity, and competitiveness of our financial market is not a matter of interest solely to the stock exchange: it is a basic prerequisite for lowering the cost of financing for companies and making credit accessible to individuals once again.
This assessment is widely shared within the sector. Tax decisions that ultimately discouraged investment—such as the application of the tax on stock market capital gains (Article 107 of the Income Tax Law)—combined with the costs and operational hurdles associated with stamp duties, have reduced the depth of our market, slowed transactions, and driven capital outflows to foreign markets.
Correcting these imbalances through a pragmatic approach to tax exemptions—while simultaneously facilitating the entry and operations of non-resident investors—aims to restore Chile’s regional leadership, which it had previously established.
One of the most eagerly anticipated pillars addresses the complex situation in the housing sector: the package that combines a down-payment savings subsidy with a buyback or liquidity mechanism for mortgage loan portfolios (up to 6,000 UF). The measure is well-targeted: it seeks to ease banks’ funding costs and narrow spreads, which would not only open the door for thousands of young families to purchase their own homes but would also provide much-needed relief to the real estate and construction sectors. For this to work in practice, however, the regulatory framework must ensure that this liquidity relief is quickly passed on to final interest rates and preserves sound risk incentives.
Likewise, the creation of an alternative stock market segment for scale-ups and innovative firms—as has already been done in Canada and the United Kingdom—is particularly interesting.
Chile has a robust entrepreneurial ecosystem, but one that often hits a ceiling when seeking intermediate financing. Facilitating a simplified issuance and listing regime will allow local savings to be channeled toward high-potential projects, opening the field to new players.
Of course, pushing through a reform of this scope in Congress will not be easy and will require a framework of fiscal prudence. But sitting idly by was not an option. An agile and deep capital market is the most effective tool for transforming savings into productive investment and reviving growth.
The bill we will review this week opens a window of opportunity that we cannot let slip by; it is now up to lawmakers and the market to fine-tune the technical details with a sense of urgency and a national perspective.
Column written by:
Álvaro Rosenblut | Partner | arosenblut@az.cl
