Pacific Alliance members' commitment to maintaining solid and orderly public finances, in a changing global economic environment is crucial to continue to attract investments, said Chile's Finance minister Rodrigo Valdes currently in New York with his peers from Peru, Colombia and Mexico, to promote the region.
In the four countries we have a similar economic policy framework, regarding fiscal rules, inflation target, relatively open financial markets and we have reacted to the new world scenario, each in its own reality, but we're not looking at the ceiling and crossing our fingers. We are all convinced this needs strong actions, said Valdes.
The Chilean minister added that despite the depreciation of the four/member Pacific Alliance currencies, we are all committed in keeping solid and orderly public finances.
Valdes said that the four members are also open to world trade, none of us is implementing protectionist measures, on the contrary, the four countries have open economies and will continue on that path. Three of us are members of the Trans Pacific Partnership agreement, and the four we have bilateral agreements
However Valdes admitted that in the short run international investors are much concerned about fiscal policy, and although it's not the case of Chile, other members have larger sovereign debts and higher fiscal deficits. Thus, ”they (investors) are interested in the strategies and actions planned or undertaken to face those challenges, and I must say we all have reacted positively in that direction”.
He added Chile remains the country with the lowest risk rate in the region which is clearly reflected in the CDS, credit default swaps.
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