International

Boric announces regiver of university debt and proposes a new financing system

The President of Chile, Gabriel Boric, announced his promised bill to forgive part of the debt that more than 1.2 million university students contracted in special credits to pay for their studies, while presenting a new public financing system.

“Most of those who are listening to these words today know someone who is in debt today for having studied in higher education with the State-Endorsed Credit (…) Today the CAE is a problem for all of Chile,” Boric said on national television.

Created in 2005 during the government of the socialist Ricardo Lagos (2000-2006), the CAE allowed thousands of young people with limited resources to access universities, but “over time it became a burden for students and their families,” the president added.

Despite what was promised in the campaign, the pardon will not be universal, but partial, and will be made “based on criteria of justice and merit,” and it will be taken into account if the person ended his career or if he has the debt up to date, Boric explained.

“Thus, we will support debtors with fewer resources, we will recognize those who have responsibly paid their dues and we will encourage the regularization of those who still owe payments,” he said.

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The legislative initiative, which will be presented this Tuesday in Parliament – where the Government does not have a majority – replaces the CAE with the so-called Public Financing for Higher Education (FES), an instrument with which beneficiary students do not disburse resources or go into debt, but pay their careers with a kind of progressive tax when they join the labor market, of no more than 8% of their monthly salary.

The FES, Boric said, “will involve a significantly lower fiscal expenditure than the State currently disburses for CAE,” which to date amounts to 9 billion dollars.

“Banks will not participate in this new financing instrument. With the FES, there will be no room for speculation, abuse, or profit, but a fair reward for the training received,” he concluded.

Boric, 38, forged his political career in the student mobilizations of 2011 in favor of gratuitousness and against the CAE.

The initial interest of the CAE was 6%, but after the mobilizations the rate was reduced to 2% during the government of the center-right Sebastián Piñera (2000-2014).

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Even so, those who graduate usually earn low incomes and pay credit to banks for years.

International

US panel backs Trump-themed coin amid controversy

The United States Department of the Treasury confirmed to AFP that the Commission of Fine Arts approved the design of a new collectible coin featuring Donald Trump, with members of the commission appointed by the current administration.

According to the proposal, the coin will feature an image of Trump standing with clenched fists over a desk on the obverse, while the reverse will display an eagle, a traditional symbol of the United States.

The sale price of the collectible has not yet been disclosed, although the United States Mint typically offers similar items for more than $1,000.

“There is no more iconic portrait for the front of these coins than that of our president Donald Trump,” U.S. Treasurer Brandon Beach said in a statement sent to AFP. He added that two additional coins — a $1 piece and a one-ounce gold coin — are also under consideration.

However, the Citizens Coinage Advisory Committee (CCAC), another body responsible for reviewing new coin proposals, declined to discuss the Trump design in late February.

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“Only nations governed by kings or dictators place the image of a sitting leader on their currency,” said Donald Scarinciat the time. “No country in the world has minted coins featuring a democratically elected leader during their term in office,” he added.

When contacted by AFP, the Treasury Department did not immediately respond to requests for further comment.

International

Fed’s Waller warns of rising inflation risks amid Middle East conflict

Christopher Waller, a governor at the Federal Reserve, said Friday that he is increasingly concerned about the inflationary impact of the ongoing conflict involving United States and Israel against Iran, particularly due to the prolonged closure of the Strait of Hormuz.

Waller, who had supported interest rate cuts over the past year amid concerns about the labor market, said he has shifted his stance in recent weeks due to rising inflation risks.

“Since the Strait of Hormuz was closed, it suggests this conflict could be much more prolonged and that oil prices will remain elevated for longer,” Waller said in an interview with CNBC.

“Therefore, this indicates that inflation is a greater concern than I had previously assessed,” he added.

Waller also backed the Federal Reserve’s decision earlier this week to keep interest rates unchanged, signaling a more cautious approach as global geopolitical tensions continue to affect economic outlooks.

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International

Brazil offers to mediate Colombia-Ecuador tensions, calls for restraint

The government of Brazil has offered to mediate in the ongoing tensions between Colombia and Ecuador, while calling on both nations to exercise restraint.

In a statement released Wednesday, Brazil’s Ministry of Foreign Affairs urged the parties involved to act with moderation and seek a peaceful resolution to the dispute.

“Brazil encourages all sides to act with moderation in order to find a peaceful solution to the controversy. It stands ready to support dialogue efforts aimed at preserving peace and security in the region,” the statement said.

Brazil also expressed “serious concern” over reports of deaths in the border area between Colombia and Ecuador, noting that the circumstances surrounding the incidents have not yet been clarified.

The diplomatic move comes amid rising tensions between the neighboring countries, increasing regional concern over stability and security along their shared border.