Chilean household debt is on record and rises to 75.

4% marked by mortgage loans

This Monday the Central Bank (BC) released its report on National Accounts by Institutional Sector
corresponding to the first quarter of this year.

In the document it was evident that the total debt of Chilean households remains at historical
maximums: it stood at 75.4%, 0.5pp. over what was recorded at the end of the previous quarter.

Of course, the issuer explained that the above should not be interpreted as a financial burden or
payments made for debt; and that is explained by the increase in mortgage bank loans.

In the first quarter of the year 2020, the gross disposable income of households grew 2.3%
compared to the same period of the previous year, mainly influenced by the income from
production (wages, mixed income).

On the contrary, the BC indicated in its report, "property income (withdrawal of profits, interest,
etc.), social benefits net of contributions and current transfers had a negative impact."

This result, together with an expansion in consumer spending of 1.8%, determined that the
sector's saving rate rose to 13% of disposable income.

This higher savings rate and the slight increase in the investment rate, placed the financing
capacity of households at 7.2% of disposable income, 0.1pp. more than in the fourth quarter of
2019.

Lastly, the issuer maintained that households recorded a deterioration in their net financial
wealth, measured as a percentage of disposable income, due to the lower stock of pension funds,
in accordance with the negative performance of local and external stock markets in the period.