DEFINITION of 'Economic And Social Stabilization Fund - Chile'
The Economic and Social Stabilization Fund is a government-owned investment organization that manages a sovereign wealth fund for the government of Chile. The funds deposited in the ESSF were sourced from surplus revenues from Chile's copper exports. According to the Chilean Ministry of Finance, the ESSF has approximately $11.13 billion in assets under management as of March 2010.
BREAKING DOWN 'Economic And Social Stabilization Fund - Chile'
The ESSF was established in 2007 with a contribution of $2.58 billion, most of which was from the dissolution of the Copper Stabilization Fund, which the ESSF replaced. The purpose of the ESSF is to stabilize revenues for the government of Chile, allowing the government to finance fiscal deficits without resorting to issuing debt. The ESSF receives deposits from the Chilean government each year where there is a fiscal surplus. The ESSF is managed by the Ministry of Finance, which is assisted by a Financial Committee made up of financial and economic experts.