The Minister of Finance, Rodrigo Cerda, received the Annual Report of the Sovereign Wealth Funds Financial Committee this Monday. This report summarizes the main activities carried out by the Committee during 2020 and was delivered by the Committee’s President, José De Gregorio, in a videoconference.
The Minister of Finance thanked the work carried out by the Financial Committee, especially in the context of the pandemic, which allowed for the adjustment of the investment policies of both, the Pension Reserve Fund (PRF) and the Economic and Social Stabilization Fund (ESSF), to face in a better way the current scenario. The Minister of Finance valued the importance of the Sovereign Wealth Funds in the country's macro-fiscal institutional framework, as their resources financed approximately US$ 5,666 million of the Nation's budget in 2020. Specifically, last year US $1,576 million were withdrawn from the PRF and US$ 4,090 million from the ESSF.
The Annual Report highlighted the positive investment returns experienced in 2020, which include a return in dollars of 9.26% in the PRF and 8.03% in the ESSF. These positive returns partially mitigated the decrease in their sizes due to the withdrawals they experienced last year.
In this context, Rodrigo Cerda and José de Gregorio exchanged opinions on the current situation of public finances and commented on the projected sizes of both Sovereign Wealth Funds in the coming years.
The delivery of the Annual Report fulfills the requirement established under Decree N° 621, issued by the Ministry of Finance in 2007, which stipulates that the Committee must prepare an annual report which will be delivered to the Finance Minister at most during the second fortnight of April. In accordance with the provisions of the aforementioned decree, a copy of said report was also dispatched to Finance Commissions of the Senate and the House of Representatives and to the Joint Budget Commission.
External and autonomous, the Financial Committee is made up of professional experts with extensive experience: José De Gregorio (president), Cristián Eyzaguirre (vice president), Ricardo Budinich, Jaime Casassus, Martín Costabal and Paulina Yazigi.