SECOND PRESIDENTIAL ROUND ELECTIONS

2021 MINUTE

The “Apruebo Dignidad” candidate, Gabriel Boric, was elected President of the Chilean Republic for the period
2022-2026, obtaining 55.87% on the second presidential round this last Sunday, December 19th, overcoming
the “Frente Social Cristiano” representative, José Antonio Kast, who obtained 44.33% of the votes.

The election reached a historical voting of 8 million votes, from which 4.620.0671 where for Boric and
3.649.647 for Kast. At the same time, the electoral participation reached a 55,63% of the total electoral
register, which implies the largest participation registered in an election since the voluntary vote, and Boric,
as the president elected with the highest voting in the republican history.

In regions other that the Metropolitan, the representative “Frenteamplista” won in Arica and Parinacota,
Antofagasta, Atacama, Coquimbo, Valparaíso, Metropolitana, O’Higgins, Los Ríos, Los Lagos, Aysén and
Magallanes. On the other hand, his opponent won Tarapacá, Maule, Ñuble, Biobío and Araucanía.

In his post victory speech, Boric affirmed that “the future of Chile needs us all from the side of the people, and
I hope that we will have the maturity enough to count with your ideas and proposals to start my government”.

Secound Round counting votes evolution

Source: Servel
 Concerning his future cabinet, the most important national medias mention to Giorgio Jackson and Camila
Vallejo for Ministry of Interior, since they both are finishing their roles as deputies on march; the ex-president
of the Medical College, Izkia Siches and personalities as the ex-fiscal Carlos Gajardo, the sociologist Lucia
Dammert, Antonia Urrejola -next to leave office as president of the supreme Interamerican Court of Human
Rights -, and Nicolas Grau for the economics ministry, circulate as well.
From the center-left other names such as Carlos Montes, whose term expires on march, the economists
Andrea Repetto and Eduardo Engel, the ex-candidate Paula Narvaez as a possible chancellery chief, as well as
Maya Fernandez, also leaving her deputy role and the Center of Climate and Resilience director Maisa Rojas
for the ministry of Science, Technology and Knowledge and innovation are also proposed.

Political Reactions

While recognizing Boric’s victory and thanking his team, José Antonio Kast, said that “since today he is the
elected president of Chile and he deserves all of our respect and constructive collaboration. Chile will always
be first”.

Sebastian Piñera, president of the Republic, called, as traditionally established, the winning candidate stating
that "history has thought us that when we go through the paths of unity, peace and collaboration,
agreements and dialogue, Chile and Chileans do well. When we are divided, when we are in a fratricide war
between us, thigs always turn out wrong”.

The Constitutional Convention indicated that “we count with his support to continue and achieve this process
in good terms. As a Convention, we reaffirm our engagement towards the respect of the institutional
character and independence of the powers of the state, in order to achieve our mission: write a Constitution
that will unite Chile”.

Other reactions

 Sebastian Sichel, ex presidential candidate of “Chile Podemos Más”: “the most important challenge
will be to make of Chile a united country, capable of understanding that freedom and justice are part
of the challenge of all of us that are in politics. We shall collaborate in stabilizing Chile, from our
position, as an opposition”.
 Evelyn Matthei, mayor of Providencia and part of Kast’s team: “(I want) to wish all the best to the
elected president Gabriel Boric, and as an opposition we have to work in order to reassure Chile goes
in the right track. Be a center-right hand modern movement that can contribute to the Chile of
 tomorrow, critical of the bad and constructive in what Chile requires”.

 Ricardo Lagos, ex-president (2000-2006): "In the middle of today’s challenges, with an economic crisis
and a pandemic, the government and the opposition will have to find some common points in order
to give a unity sign to Chile. Also, he will have the honor of signing and to initiate Chile’s next
Constitution”.

Economic Reactions

Santiago’s Stock Market reacted strongly after Gabriel Boric’s victory. In its first session, after the ballot, the
IPSA – the principal indicator of the local stock – fell hardly 3.54% reaching 4.203,32 points before noon. That
said, when initiated the session, the index reached a 7% fall, moderating itself afterwards.

The analysts anticipated that the Chilean markets would initially react negatively and that the most
concerned actions would be the ones tied to regulated sectors and linked to the provisional system, and
health. The most affected papers are, until this now, the ones of Aguas Andinas (-11,47), Inversiones la
Construcción (-9,97%) and SQM-B (-7,90%).

For the national and international market strategist of Nevasa, María Luz Muñoz, she said that "part of this
result was already internalized by the market”, and predicts that the “IPSA has been hardly hit, and it should
fall between 8% and 10% reaching $900".

That rising figure of the devise is shared by the economist and BICE Inversiones’ Chief, Marco
Correa, who added that “the Central Bank, in a 10 years lapse would rise to levels in between 6,5% and 7%.”

The Chief economist of Latin America of Principal International, Valentín Carril, is waits for “a negative
reaction, because reality is different to expectations, but in a moderate way”. He considered that the stoke
market could lose 5% and that the dollar could rise between $20 and $30, after closing at $847 on Friday.

The Inversion JP Morgan bank, reported that the substantial progress that Boric proposes “requires large
agreements, as well as reaching new agreements with other sectors”, at the time that the economic program of
the candidate “became more gradual in comparison to the first version, but a precedent supplementary moderation is
needed. He added that to minimize the risks, in terms of inflation, “the market will need fast signs of real
moderation”.
Unions and societies:

 Banks and Financial Institutions Association (Abif), José Manuel Mena: “(As a bank) we make a call to
the elected president, Gabriel Boric, to allow that in the next period, government and opposition may
perform their roles in democratic spaces without violence. We believe that that is the only way in
which we can assure certitude and stability, two virtues that have characterized Chile for decades”.

 The National Agriculture association (Sociedad Nacional de Agricultura, SNA), Cristián Allendes: “We
hope that he will include agriculture in his program, it’s traditions and regions. For our country to
continue its growth, social and economic development are crucial; generating opportunities for all,
safety and peace, progress and democracy. We hope that the elected president will fulfil that”.

 The Chilean Chamber of Construction (La Cámara Chilena de la Construcción -CChC), Antonio Errázuriz:
"Chile has an elected president that, starting march, will have to face great challenges. If he
consequent to what he said during his campaign, this means that he will have to work for the unity of the
Chilean people in order to eradicate violence, to solve urgent problems, social demands, and to make the
economy grow, It will not be easy, but we are a lot to be willing to collaborate to construct a better country”.

The international press underlined the Chilean elections and various heads of states manifested themselves
in regards to the results:

 Alberto Fernández, president of Argentina: We must make a commitment to strengthen the bonds of
brotherhood that unite our countries and to work together as a region to put an end to inequality in
Latin America.
  Iván Duque, president of Colombia: “We express our interest in keep on working together in order to
strengthen the historic and fraternal bilateral relation that ties us. We are sibling countries”.

 Josep Borrell, high representative of the European Union, of the Foreign Affairs and Security Politics
department: “We hope to strengthen even more our relations with the future Chilean government. We
are partners and we are stronger together”.

The aspects of the new government that concern foreign affairs will be focused on, in a starting instance,
three key issues: go on board the Escazú Agreement, in an environmental dimension; a greater coordination
of Latin America facing the world, Asia and the other world powers as China and the United States, but with
political autonomy, and an articulation of various progressist governments, in order for it to exist “ a
multilateral politic based on human rights and a reinforced democracy".

In regards of where will it be Boric’s first tour, the senator indicated that “there is no decision taken yet, but
we have already discussed that it will probably be Argentina. In fact, we are now speaking with the people
there, so they can be our first call as well”.

Programme axes

The “Programmatic implementation agreement”, a document worked with the economic teams of the ex-
candidates Yasna Provoste and Marco Enriquez Ominami, consider profound changes in the tributary system,
provisional and health structures, including, as well, the creation of a National Development Bank.
Here are some of the most important proposals:

Keys of the agenda by area:

 Tributary: aims to advance towards a system similar to the one of most of the OCDE countries, in terms of
collection and progression. At the same time, a new tax regime to the rent for the large companies is
proposed; reconsider some issues regarding the wealth tax, and estimate and additional collection of 1% of
the GDP (estimated) for the measures in this item.

 Pensions: A Basic Universal Pension (PBU) of $250 for all Chileans aged 65 or more, financed by
general rents form the actual “Solidarity Pillar”, base. A new contributive pillar of public nature and
mixed in its design that will be financed with that charge.
 At the same time, in the transition towards a new system, the new pensions go in the new system,
while the old affiliated will chose to stay or to leave their old system. The heritage legislation will be
maintained in regards to the mandatory contributions to the social security system, according to the
pension annuities, proposed by the different candidacies.

 Employment: it aims to rise the minimum wage in a stepwise manner in order to overcome the $500
thousand pesos at the end of the government, supporting through all the regime the micro and small
enterprises/companies. The agenda intends to gradually reduce the working hours to 40 hours per
week, generating new employments to accompany this modification. Other of the projects are to
legislate the legal gratifications, for it to be able to distribute effectively the utilities between the
workers of an enterprise/company. In order to mitigate the negative impact of this reforms in the
economic display of the MiPymes, Pymes as well as the large companies, this regime will be introduced
gradually.

 Gender equity: female working participation is, also, a key element in the agenda; 500 thousand new
female employments will be created throughout the government; redesigning subsidies, simplifying
the subsidies and focalize them on women, exclusively the (IFE Laboral); strengthen the Woman’s
Work Bonus (Bono al Trabajo de la Mujer), as well as Subsidy to the youth (SEJ), among others.

 Pymes and MiPymes: it aims to give cash flow to the ones who need it; enlarge the access and
improve the conditions of the excluded groups of the bank system, perfectionating a guaranteed
credit system (Fogape, Fogain among others), strengthening the credit programs for MiPyme of the
Banco Estado and the ones directed to MiPyme of Corfo, Sercotec, Fosis and other institutions. The
agenda proposes, as well, to promote transparency regarding the regime in order to include more
and more MiPymes, without damaging them with semi-integrated system; reassure that the large
companies pay effectively the IVA for the invoices issued by MiPyme, and that the Pymes are not the
ones to pay the IVA without having the fund to do so. Another angle of the agenda aims to perfect
the 30 days payment law and implementation a management pay program to supervise that the
public system actually enforces the law.

 Health: the agenda wants to advance towards a Universal System focused on primary attention,
based on a public system that covers all citizens that live in Chile (regardless of nationality) which is
financed in a progressive way by general taxes. The creation of the Universal Fund of Health (FUS) will
be financed with the 7% of mandatory contributions of all people, as well as the State’s contributions.
The FUS intends to guarantee a universal access to health care, founded on quality and equity,
without any type of discrimination. The Isapres cease to exist as we know them from the very
beginnings of this reform. There will be a transitional regime in which the benefits that already exists
will be maintained to all users of the actual Isapres, also being financed by the FUS. In this transition,
the continuity of a healthcare system will be reassured and guaranteed. In addition, or as a
supplement to the mandatory contributions and participation to the FUS, other complementary
private insurances can be demanded and purchased in a secondary and complementary way; the FUS
will finance the access to medical care in public and private institutions.

 Migration: the agenda searches to apply humanitarian residencies to facilitate the access to housing
to families in emergency conditions (VIF, catastrophes, climate emergencies, immigrations, etc) or in
case their rights are being dangerously vulnerated. It is intended to reaffirm and boost of the
Marraketch Pact about migrations. It is also an issue to ensure that the National Service of Migration,
in each one of the regions, is correctly being established, promoting, a decentralized way to
instructed on human rights, interculturality and right to asylum rand non discriminating policies to all
staff concerned.
  Housing: propone un Plan de Emergencia Habitacional, que implica la construcción de 65 mil
viviendas dignas al año desde el sector público y 260 mil en cuatro años, con lo que se busca reducir
en un 40% el déficit actual. El Estado tendrá un rol activo en la adquisición de suelo urbano,
facilitando que las familias se establezcan en sus territorios y barrios según sus necesidades, redes de
apoyo, adecuación cultural, proyectos y ciclos de vida. Se impulsará el arriendo a precio justo, como
en ciudades como Viena, Berlín y Barcelona. Para esto se destinarán recursos a los municipios para
financiar al menos
5.000 viviendas anuales en esta modalidad, usando inicialmente los instrumentos vigentes y
realizando las adquisiciones o transferencias de suelo respectivas. En paralelo se desarrollará un
nuevo programa de arriendo protegido.

 National Bank of Development (BND): an organ that works as a financial conglomerate with two
state specialized organisms: a bank specialized on credits, with first and second floor instruments;
and a Financial Found specialized in the funding of innovation projects, both with a corporative
specialized and independent government, and with ad-hoc funding to their instruments. The BND
will finance the innovation and devolvement of Pyme and the initiatives that aim towards a
structural change of our productive matrix.

 Decentralization: it searches to eliminate the presidential delegate figure since it is redundant with
the governor role or regional governor. The agenda states that a process of elaboration of regional
rent Law will be convocated in order to move forward towards a financial autonomy and territorial
equity. A law project to restructure the municipal financial system will be presented, it will increase
the fiscal contributions to the “Common Municipal Fund” in more than a 1000%. It also considers the
budgetary reallocation with the objective of achieving a $300.000 per capita base for all
Municipalities.

Political trajectory

Gabriel Boric Font was born in Punta Arenas on February 11th in 1984. Law graduate and politician of the
Convergencia Social party.

He is currently a deputy for the 28th District, Magallanes Region and Chilean Antarctica, for the period 2018-
2022. He was previously deputy for the 60th District, Magallanes Region and Chilean Antarctica, for the
period 2014-2018. Between the years 1999 and 2000 he participated in the refoundation of the Highschool
Students Federation of Punta Arenas. At the Universidad de Chile, he became part of the collective Izquierda
Autónoma. In 2016 he founded the Movimiento Autonomista.

In 2008 he was elected counselor of the Students Federation of the Universidad de Chile (Fech). The following
year, in 2009, he was elected president of the Student Council of Law School of the same university. Between
2010 and 2011, he was a university senator of the Universidad de Chile.
During 2012, following the Creams Izquierda victory, que assumed as president of the Fech, after Camila
Vallejos Dowling’s office. During his administration, he became the leader of the student’s movement that
begins in 2011, becoming as well, one of the voice men of the Students Confederation of Chile (Confech).

As a consequence of Social Outbreak in Chile on October 2019, he participated at the “Social Peace Agreement
and a New Constitution”, signed on November the 15th of that same year; event that initiated a constitutional
process in Chile.

Links of interest
 La Tercera: “Todas las redes del nuevo mandatario”
(En formato lista: https://portal.nexnews.cl/showN?valor=iengy)
 El Mercurio: “Jacskon, Siches y Vallejo: las figuras clave para el próximo gabinete ministerial”
 Diario Financiero: “Los principales ejes económicos del programa de gobierno de Gabriel Boric”