Chile's government aid pushes the middle class deeper into debt
Santiago de Chile, Jul 6 (Prensa Latina) A plan to help the middle class announced by the Chilean government is now the focus of harsh criticism from those who believe that it will only lead to further indebtedness in that social sector.
The program presented the day before by President Sebastian Piñera is based on the delivery of soft loans financed by the State, postponing debt payments for up to six months, postponing rental subsidies for three months and extending loans with State guarantees (CAE) for higher education.
The president announced these measures as an important aid to face the consequences of the health, social and economic crisis, which is plunging more and more Chileans into poverty, but for many it will only lead to worsening the already precarious conditions of those who from the government are qualified as middle class.
In this regard, independent senator and former presidential candidate Alejandro Guillier warned that when the social outburst occurred on Oct. 18, 'a large number of those who took to the streets were middle class people drowning under debt, but the solution that Piñera offers them to face the pandemic means more debt.'
'They didn't see it coming (the social outbreak) and they will continue not to see it coming,' Guillier said.
Daniel Nuñez, president of the Finance Committee of the Chamber of Deputies, said that the government's ' pompous announcement' only reiterated the logic of indebtedness for a Chile where private debt is among the highest in the world.
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