Local banking, which has been characterized by providing the lowest rate and longest-term loans in Latin America, but in recent times has been raising rates and reducing loan terms. Although prices are still below the region, if before they gave mortgage loans of 25 or 30 years, in recent days many are lowering that term to a maximum of 20 years.
This is directly linked to the AFP withdrawals that have been made in the last year and two months, as the same economists have warned. In this context, a Cadem survey, commissioned by the AFP Association, asked people about the effects they think there would be in the local market if the AFPs are terminated.
There it is shown that those who believe that it would be more expensive to request a mortgage loan have risen, although less than half think so anyway. If in July 32% affirmed that this would happen, in October it is already 44%, which implies an increase of 12 percentage points. In any case, 56% do not believe that mortgage loans would rise.
On the other hand, there was also an increase when people were asked if they believe that, if the AFPs were to end, businessmen would invest less in Chile, since 29% believed this in July, but in October it rose to 40%, that is, it rose 11 percentage points. In any case, 60% believe that this would not happen.
Also, 42% believe that inflation would rise, while 58% do not. Regarding the value of the shares of Chilean companies, 65% believe that they would not fall significantly if the AFPs are terminated, while 35% indicate that this would happen.
65% do not believe that Chile would have lower economic growth if the industry is ended, while 35% say they will. This last figure also registered an increase, since in July 30% said that the country would grow less if the industry is eliminated.
In the framework of the processing of the fourth pension withdrawal, in which there is still no date for its vote in the Senate room, since it will be defined next Tuesday, Cadem also consulted on what is the best measure to face the economic crisis .
There, those who believe that it would be better for the State to help finance the fall in income through bonds and contributions are on the rise; while those who say that it would be better to continue approving withdrawals of 10% of pension funds has decreased.
This, since in October 73% opted for state aid, which compares with 66% in July, 57% in May, and 61% in April. In parallel, in October 18% said that a new withdrawal from pension funds would be better, versus 30% in July, 38% in May, and 33% in April.
Those who do not know or do not respond also increased, since if in July it was 4%, in October it was 9%.
–
