Economic And Social Stabilization Fund - Chile

AAA

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.

INVESTOPEDIA EXPLAINS '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.

RELATED TERMS
  1. China-Africa Development Fund - ...

    Established in June 2007, the China-Africa Development Fund is ...
  2. Sovereign Credit Rating

    The credit rating of a country or sovereign entity. Sovereign ...
  3. Central Bank

    The entity responsible for overseeing the monetary system for ...
  4. Monetary Policy

    The actions of a central bank, currency board or other regulatory ...
  5. Reserve Currency

    A foreign currency held by central banks and other major financial ...
  6. Sovereign Wealth Fund - SWF

    Pools of money derived from a country's reserves, which are set ...
Related Articles
  1. Sovereign Wealth Funds - Friend Or Foe?
    Investing Basics

    Sovereign Wealth Funds - Friend Or Foe?

  2. Institutional Investors And Fundamentals: ...
    Fundamental Analysis

    Institutional Investors And Fundamentals: ...

  3. An Introduction To Sovereign Wealth ...
    Mutual Funds & ETFs

    An Introduction To Sovereign Wealth ...

  4. Keeping An Eye On The Activities Of ...
    Options & Futures

    Keeping An Eye On The Activities Of ...

Hot Definitions
  1. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  2. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  3. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  4. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  5. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
  6. Call Risk

    The risk, faced by a holder of a callable bond, that a bond issuer will take advantage of the callable bond feature and redeem ...
Trading Center