A provision within Chile’s sweeping reform package aiming to prohibit “anatocismo” – the practice of charging interest on accrued interest – is facing a potential veto from the government. Despite being approved during the reform process, the measure has garnered opposition from key financial institutions like the Financial Market Commission (CMF) and the Central Bank. These organizations argue against the ban, signaling concerns about potential economic consequences. Anatocismo is a common practice where interest is calculated not only on the principal amount of a loan but also on previously accumulated interest. Proponents of the ban argue it’s a predatory practice, particularly harmful to borrowers. The government’s move to veto highlights a significant disagreement over financial regulation within Chile’s legislative and executive branches. The debate centers around economic impact versus consumer protection.