In net terms, these changes have contributed positively to the Bank’s net worth (dotted line in Figure 16), which had remained negative for many years due to the historical weight of Subordinated Debt, the effect of the exchange rate mismatch between assets and liabilities, and a negative rate differential (between local debt and international reserves). Not only does the higher profitability of domestic assets contribute to close this gap, but the reduction of the Bank’s long-term debt stock (through repurchases) will reduce the financial burden for the next years. In practice, while greater returns are being received on local assets, on liabilities the Bank is paying ever lower rates, a situation that will continue for a long period of time. In addition, the peso has depreciated due to the mismatch between a high proportion of foreign currency assets (reserves) and local currency liabilities (bonds and monetary base). These factors combined have generated a positive value of the net worth for the first time in many years 7, which in previous projections was only foreseen in 2028. With the ups and downs of the currency in the short term, net worth will fluctuate around its current values during the next few years, to settle in positive numbers towards the end of 2025. These long-term projections are of a dynamic nature and are constantly reassessed, including the desired level of reserves.
16  40  60 80 Unchanged  100  Figure 9  Labor income and social benefits (1) (2) (variación anual, porcentaje)  20  20  10  10  0  0  -3  -10  -10  -20  -20 -27  -30 -40  Second quarter Labor income  -30 Third quarter Social benefits  -40 Net  (1) The labor income is calculated using the wage bill, where (a) the employment projection is that implicit in the baseline scenario of the September 2020 MP Report, (b) those employed covered by the Employment Protection Law are excluded from the calculation, and (c) the labor income of self-employed workers would fall by 55% in Q2 and 35% in Q3. (2) The calculation of benefits considers: Employment Protection Law, Emergency Family Income (IFE), Severance Insurance, Covid-19 Emergency Bonus, and Middle-Class Bonus. Official information regarding payments already made is updated to 27/Aug/2020 and interpolated for the remaining months. For the IFE, four payments are considered. It does not consider the reforms to these benefits that had not been approved at the statistical closing. Source: Central Bank of Chile using INE, Ministry of Finance and Superintendence of Pensions data. Figure 10  Sales by electronic billing (*)  (moving two-week average, billion pesos)  7  Supermarkets  6  30/Jul,: Law for 10% pension fund withdrawal published in Official Gazette  5  +33% 6 +15%  4  2  20 01  4  2  26/Mar.