Central Bank of Chile – Financial Stability Report (June 2011)

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Vulnerabilities in the domestic financial system and foreign exchange exposures risks leading to a deterioration in Chile's funding conditions, the Central Bank of Chile's Financial Stability Report, published on Thursday, says.

The report identifies three possible risk scenarios in the international economy that may cause a sharp reversal of the country's capital supply and a substantial contraction of external demand. These include: an aggravation of the fiscal and financial situation of

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