Chile announces $2 billion fund to benefit informal workers amid coronavirus outbreak

Chilean President Sebastian Pinera on Wednesday announced a fresh $2 billion fund to help support the country´s informal workers as the coronavirus outbreak continues to batter the South American nation´s economy.

Chile´s government had previously announced a nearly $12 billion stimulus package, worth nearly 5% of gross domestic product, aimed at saving jobs and protecting small businesses. The new measures announced by Pinera on Wednesday seek to aid those not covered by the previous package, a sign of the deepening crisis in Chile. The world´s top copper producer has already confirmed more than 5,000 cases of the novel coronavirus, among the highest tallies in Latin America.

"Our commitment has been to ensure that this transitory crisis does not turn into a permanent one that comes to impact the quality of life, dreams and future projects of all Chileans," Pinera said in a televised address. The center-right Pinera said the latest set of "emergency measures" would benefit 2.6 million informal workers who lack unemployment coverage. Many had fallen through the cracks of previous aid announcements.

This second phase of stimulus also grants additional benefits to small business, including credit lines guaranteed by the state to help bridge the gap while most remain shuttered during the pandemic of COVID-19, the potentially lethal respiratory disease caused by the coronavirus. Large swaths of Santiago are under lockdown, and virtually all non-essential businesses remain closed throughout the city of 6 million.

Several of Chile´s neighbors in South America have also promised to unleash unprecedented stimulus packages in order to buffer their economies from the impact of the pandemic. Peru, for example, said in March it was preparing a massive relief package equal to about 12% of gross domestic product.