MercoPress. South Atlantic News Agency

Chilean government aid for Magallanes private sector

Almost five million US dollars in development funds were delivered last year to 519 companies in Magallanes Region in the extreme south of Chile, which represents a 30% increase over 2006.

Chile's regional representative for the Promotion and Production Corporation, Corfo, Bernardo Troncoso revealed this week that all the money was channeled to the private sector in the form of promotion subsidies, soft investment credits and innovation support. Troncoso said that during 2007, a total of 29 million US dollars were generated in new projects from the private sector. The Program for Suppliers Development included six programs and 90 small companies, most of them with less than three employees. Similarly with the Quality ISO rules promotion program and good farming practices which means in the coming months an expected 130 companies will be officially certified, making their access to credit and other benefits much easier and less bureaucratic. Another micro-companies modernization program, according to Troncoso, benefited 60 enterprises, mostly from Punta Arenas, Puerto Natales and for the first time seven from Cape Horn. These programs are in the framework of promotion of special zones of Chile particularly extreme areas such as is Magallanes Region. Troncoso said that 46% of resources were invested in companies linked to the tourism industry, 36% to farming and forestry, 14% fisheries and 4% multi-sector. "In 2008, and following on president Bachelet's instructions we're planning to continue supporting quality, innovation and private investment in tourism, farming, forestry, fisheries and fish farming, particularly small and medium undertakings", anticipated Troncoso.