UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 18-K/A
For Foreign Governments and Political Subdivisions Thereof
AMENDMENT No. 1
to
ANNUAL REPORT
of
REPUBLIC OF CHILE
(Name of Registrant)
Date of end of last fiscal year: December 31, 2019
SECURITIES REGISTERED*
(As of the close of the fiscal year)
|
| ||||
| Title of Issue | Amount as to Which Registration is Effective |
Names of Exchanges on Which Registered | ||
| N/A |
N/A | N/A | ||
|
| ||||
|
| ||||
Name and address of person authorized to receive notices
and communications from the Securities and Exchange Commission:
Andrés de la Cruz, Esq.
Cleary Gottlieb Steen & Hamilton LLP
One Liberty Plaza
New York, NY 10006
| * | The Registrant is filing this annual report on a voluntary basis. |
This amendment to the Republic of Chile’s (the “Republic” or “Chile”) Annual Report on Form 18-K for the fiscal year ended December 31, 2019 (the “Annual Report”) comprises:
(a) Pages numbered 1 to 5 consecutively.
(b) The following exhibit:
Exhibit 99.C: Copy of the 2019 National Budget.*
Exhibit 99.E: Recent Developments.
This amendment to the Annual Report is filed subject to the Instructions for Form 18-K for Foreign Governments and Political Subdivisions thereof.
| * | Previously filed in paper format under cover of Form SE on May 1, 2020. |
2
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant, the Republic of Chile, has duly caused this amendment to the Annual Report to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Santiago, Chile, on the 5th day of May, 2020.
| REPUBLIC OF CHILE | ||
| By: | /s/ IGNACIO BRIONES | |
| Ignacio Briones | ||
| Minister of Finance | ||
| Republic of Chile | ||
3
RECENT DEVELOPMENTS
The information contained in this section supplements the information about Chile corresponding to the headings below that is contained in Exhibit 99.D to Chile’s Annual Report. To the extent the information in this section differs from the information contained in the Annual Report, you should rely on the information in this section. Capitalized terms not defined in this section have the meanings ascribed to them in the Annual Report.
THE ECONOMY
Economic Performance Indicators
The following table sets forth changes in the Imacec, Mining Imacec and Non-mining Imacec (in each case, as defined in the Annual Report) for March 2020:
Imacec, Mining Imacec and Non-mining Imacec
(% change from same period in previous year)
| Imacec | Mining Imacec | Non-mining Imacec | ||||||||||
| 2020 |
||||||||||||
| March |
(3.5 | ) | 0.8 | (4.0 | ) | |||||||
In March 2020, the Imacec decreased by 3.5%, mainly due to a 4.0% decrease in the non-mining Imacec, in turn, driven by the COVID-19 outbreak and the measures taken by the government to mitigate the spread of the virus. See “Recent Developments—Social Developments—The Outbreak of COVID-19” in the Annual Report. This decrease in the non-mining Imacec was partially offset by a 0.8% increase in mining Imacec.
On May 4, 2020, the Chilean Budget Office updated its medium-term real GDP growth forecast for the Chilean economy, projecting a real GDP growth of 4.3% and 3.5% for 2021 and 2022, respectively.
PUBLIC SECTOR FINANCES
Government Expenditures
2020 Budget
On May 4, 2020, in light of the measures introduced in April 2020 to address the COVID-19 outbreak, the advisory committees to the Ministry of Finance updated their projections on the long-term price of copper and Chile’s trend real GDP growth for the periods indicated.
Revised Assumptions for Structural Balance
| September 2019 Assumptions (1) |
New Assumptions (2) |
|||||||
| Trend Real GDP growth (% annual change for 2020 compared to 2019) |
2.8 | 1.8 | ||||||
| Long-term Copper price (US$ cents per pound) (2020-2024) |
286 | 273 | ||||||
| (1) | Considered for the preparation of the 2020 Budget Law |
| (2) | Published by the Budget Office on May 4, 2020. |
Source: Chilean Budget Office.
E-1
Establishment of Principles of Fiscal Policy
On May 4, 2020, following the revised projections by the advisory committees to the Ministry of Finance described above, the Chilean Budget Office, updated the structural deficit forecasts for the Chilean economy, projecting a structural deficit of 3.5% in 2020, 3.0% in 2021 and 2.1% in 2022, compared to a structural deficit of 3.2%, 2.5% and 2.0% for such years, respectively, included in the goals set by the Piñera administration in 2018. See “Public Sector Finances—Fiscal Responsibility Law—Establishment of Principles of Fiscal Policy” in the Annual Report.
In addition, on May 4, 2020, the Chilean Budget Office announced that it projects the headline fiscal deficit to reach 2.2% in 2021 and 2.3% in 2022. Given such estimates, the central government’s gross public debt is expected to increase to 32.7% of GDP in 2020, 35.9% of GDP in 2021 and 37.9% of GDP in 2022.
While the forecasts for the Chilean economy included in this Amendment might have been reasonable when formulated, actual outcomes depend on future events. Accordingly, Chile can give no assurance that economic results will not differ materially from the information set forth above.
E-2