Congress Approves BancoEstado Capitalisation
With a generalised support to the Bank’s administration and its role in the national economy, the Chilean Congress passed the project for a BancoEstado capitalization operation of US$ 450 million.
The initiative was approved by 66 votes in favour and 2 abstentions. In this way, the financial institution will receive new resources, together with US$ 50 million for the Guarantee Fund for Small Entrepreneurs (Fogape), which is also administered by the Bank.
After successfully completing this final legislative procedure, the bill was ready to be promulgated by President Bachelet in the next few days, which means that the capital will be available to the bank before the end of the year.
A Vote of Confidence
The Executive Committee of BancoEstado expressed that it was honoured by the confidence shown by Parliament during the course of this approval .
In this context Rodrigo Valdés, President of BancoEstado, said “this support not only provides BancoEstado with the capital it requires to fulfill the ambitious objectives it has established in its strategic plans for the 2014-2018 period, but also provides it with another enormous capital which is the confidence that the political and social world has in the important contribution that our institution can make in benefit of the development of the country and of every Chilean”.
On her part, the Bank’s General Manager, Jessica López, said that this support “fills each Bank employee with pride and supports the projects and initiatives we plan to implement and, above all, emphasises the importance of the contribution of every worker towards the attainment of the dream to contribute to build a country for each one and all of us”,
The Bank’s Vice-President, Guillermo Larraín also expressed his thanks, saying that “this encourages us to consolidate this challenge of making BancoEstado a potent inclusion tool that allows every Chilean to go into business to develop and have access to the tools and opportunities that contribute to improving their quality of life”.
During the processing of the project, Alberto Arenas, the Finance Minister, said that the objective of these new resources for BancoEstado and Fogape is to offer more financing to Pymes (Small Entrepreneurs), more low interest-rate mortgage loans and the development of more products that bring the population closer to financial services.
The target of BancoEstado in the next four years is to increase its small company customers by 15000, increase its micro-entrepreneur credit holders by 50 thousand, and increase loans for small companies by US$ 1,500 million I addition to placing more than US$ 1,000 per annum in new housing credits.
In terms of financial inclusion, the commitment is to achieve nine million CuentaRUT accounts, 16 thousand CajaVecina outlet points, and develop the “Banking for Female Entrepreneurs” programme.