CHILE

High cruise speed

BB2

MEDIUM RISK

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

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GDP USD277.076bn (World ranking 41, World Bank 2017)
Population 18.06mn (World ranking 63, World Bank 2017)
Form of state Presidential Republic
Head of government Sebastián Piñera
Next elections 2021, presidential and legislative
  • Natural resource base: Chile is the largest copper producer in the world, but also benefits from other minerals, forestry and agriculture
  • Strong medium-term growth
  • Business-friendly environment
  • Sound macroeconomic policy framework
  • Good external balance but could deteriorate
  • Widely accepted, democratic political system with successive peaceful transfers of power
  • Classified as an OECD high income economy
  • Sensitive to commodity prices, particularly copper
  • High level of income inequality
  • Numerous strikes and political street protests could trigger instability

Trade structure by destination/origin

(% of total)

Exports Rank Imports
China 27%
1
24% China
United States 12%
2
22% United States
Japan 8%
3
8% Brazil
South Korea 6%
4
5% Germany
Brazil 5%
5
4% Argentina

Trade structure by product

(% of total)

Exports Rank Imports
Non Ferrous Metals 26%
1
7% Refined Petroleum Products
Non Ferrous Ores 25%
2
5% Cars And Cycles
Other Edible Agricultural Prod 9%
3
4% Crude Oil
Meat 7%
4
4% Telecommunications Equipment
Paper 4%
5
4% Commercial Vehicles
Although the payment behavior of domestic companies is generally good, with payments normally taking place within 60 days on average, standard payment terms are very broad (60 to 90 days).

  • Low

  • Medium

  • Sensitive

  • High

  • Payments

  • Court proceedings

  • Insolvency proceedings

 

Courts are trustworthy however the system provides no fast track proceedings, meaning pre-legal action conducted by collection specialists is the most efficient way to obtain payment without incurring legal costs and delays.

Debt renegotiation mechanisms aiming at rescuing companies have been put in place but these are rarely used, with liquidation remaining the default proceeding when it comes to dealing with insolvent debtors. Therefore the chances of collecting unsecured debt through insolvency courts are nonexistent

Contact Euler Hermes

Economic Research Team

research@eulerhermes.com

Country Risk Analyst:

Georges Dib  

georges.dib@eulerhermes.com

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