S & P says Chile's GDP growth should boost tax revenues

The Standard & Poor's agency said Thursday that a favorable growth in the gross domestic product of Chile is expected to boost public revenue and improve the fiscal balance this year , helping to stabilize the public debt burden.

The rating agency has maintained a "A + / A-1" note for the country's foreign currency debt, with a stable outlook, while fiscal consolidation and the gradual recovery of economic momentum would help stabilize public finances of the world's largest copper producer.

S & P expects the government of conservative President Sebastián Piñera to pursue rule-based tax policy and take steps to boost long-term economic growth prospects.

This month, the government said it would seek to reduce the structural budget deficit. at 1.8% of GDP in 2018, compared to 2.0% last year, to try to stabilize debt developments and face larger commitments inherited from the previous administration .

The new budget target is It is part of a plan of austerity and reallocations to limit the increase in spending planned for this year.

Earlier Thursday, Chile placed debts in pesos for the equivalent of $ 1,625 million in international markets, in a structured transaction. two tranches that are regulated by Euroclear, reported IFR, a Thomson Reuters service.