Economic and Social Stabilization Fund
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The Economic and Social Stabilization Fund (ESSF) is a state-owned fund in Chile aimed at stabilizing the finances of the Central Government in face of potential "abrupt changes in the economic cycle and extraordinary events".[1] It was created in 2007 by the merger of the former Copper Stabilization Fund (Spanish: Fondo de Compensación para los ingresos del Cobre) and of the stabilization resources created by Decreto Ley N° 3.653 of 1981.[1][2][3] The fund is also used yearly to amortize part of the public debt and to add to the Pension Reserve Fund.[1] The fund is subject to the Fiscal Responsibility Law.[1]
The Copper Stabilization Fund was created in 1987 basing it on the incomes of the state-owned copper mining company Codelco.[4] This allowed for more precise annual government budget planning given that copper prices can exhibit strong fluctuations.[5]
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