According to the Central Bank, the level of interest rates and the difficulties in renewing loans have been losing relevance, which contrasts with the requirement for collateral, which has become more important.

The performance of companies in Chile remains stable or has improved compared to the third quarter of 2024 amid a less negative perception of sales, despite a higher-than-expected increase in costs, according to a report from the Central Bank on Thursday.

In its February Business Outlook Report, the agency revealed that financial conditions remain tight, although less restrictive.

"The level of interest rates and the difficulties in renewing credits have been losing relevance in this perception, which contrasts with the requirement for guarantees, which has become more important," the document showed.

In the short term, companies expect their costs and sales to remain stable, with prices increasing slightly and margins continuing to narrow.

"The slightly higher-than-expected increase in costs is a cause for concern, particularly in a context where sales prices have not changed much and margins continue to narrow," he said.

Expectations have improved over the past twelve months, although several countries are cautious in their projections, given the possibility that the more favourable perception in recent times may be temporary.

In terms of employment, firms do not report any major changes in their workforce.

(Report by Fabian Andres Cambero)