## Chile: Technical Assistance Report-Fiscal Considerations in Managing Stabilization Funds

_IMF Staff Country Reports, July 7, 2023_

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## Bibliographic details
- Published: July 7, 2023
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400249037.002

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### Summary overview
- Chile’s strong fiscal framework has served the country well.
- Cross-country experience shows that an adequate buffer in a stabilization fund can facilitate governments’ response to shocks.
- Rebuilding fiscal buffers in a holistic framework can help Chile better manage tail risks.
- Overall, the pace of building buffers should be tailored to economic conditions.

### Quantitative model findings
- The quantitative models suggest that keeping debt well below the current prudent ceiling on central government gross debt at 45 percent of gross domestic product is appropriate.
- Rebuilding buffers can follow two broad approaches implied by the models:
  - Reduce public debt to give space for future borrowing in adverse times.
  - Accumulate liquid assets to rebuild fiscal buffers.

### Policy recommendations and fiscal considerations
- Fiscal efforts to achieve a broadly balanced fiscal position are an important way to rebuild buffers.
- The government should avoid borrowing more debt at high interest rates to save assets in the stabilization fund.
- Use of stabilization funds should be informed by cross-country experience and tailored to Chile’s specific risks and economic conditions.

### Key statistics and publication metadata (as presented)
- Pages: 57
- Volume: 2023
- Issue: 249
- Series: Country Report No. 2023/249
- DOI: https://doi.org/10.5089/9798400249037.002
- Stock No: 1CHLEA2023004
- ISBN: 9798400249037
- ISSN: 1934-7685
- Publication date on landing page: July 7, 2023
- Subject tags listed: Environment, Fiscal policy, Fiscal risks, Fiscal stance, International organization, Monetary policy, Natural disasters, Public debt, Public financial management (PFM)
- Keywords listed: Fiscal risks, Fiscal stance, Global, IMF's Fiscal Affairs Department, Mexico budget revenues stabilization fund, Natural disasters, public treasury, size of stabilization funds, support fund, Tail risk

*International Monetary Fund. Fiscal Affairs Dept. "Chile: Technical Assistance Report-Fiscal Considerations in Managing Stabilization Funds", IMF Staff Country Reports 2023, 249 (2023), accessed 9/4/2026, https://doi.org/10.5089/9798400249037.002.*

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_Source: https://www.imf.org/en/publications/cr/issues/2023/07/07/chile-technical-assistance-report-fiscal-considerations-in-managing-stabilization-funds-535833_