SANTIAGO, (Reuters) – A group of U.S.-based businesses in Chile has warned that a proposal to let Chileans draw from their pensions for the fourth consecutive time since the outbreak of the coronavirus pandemic could severely harm the country’s business environment.

The bill was approved by Chile’s lower house of Congress late last month. However, it is facing more opposition in the Senate where right-leaning legislators allied to the President Sebastian Pinera administration have opposed it.

In a statement, the Chilean-North American Chamber of Commerce claimed that this new withdrawal of pensions and, in particular, of life annuities “causes severe damage to Chile’s image as a destination for foreign investments.”

The central bank and Chile’s government have warned that a fourth withdrawal from the pension system would be detrimental. This will disproportionately affect the elderly. However, opposition lawmakers say that the cash provides a source of support for Chileans who are suffering the economic effects from the coronavirus pandemic.

Chileans had been prohibited from accessing their pension funds before the pandemic. The economic impact of the pandemic in March 2020 led Congress approval of three withdrawals. Each allowed citizens to cash out 10% of their pension funds.

The fourth withdrawal could allow you to withdraw an additional 10%

Amcham and Chilean regulators are particularly concerned about the clause that could allow annuity purchasers to get an insurance company advance up to 10%.

Amcham stated that approval of such characteristics would cause severe damage to Chilean institutions and impact on foreign investments.

Chile’s financial regulator warned earlier that nine annuity-dealing insurers could be insolvent by the provisions of the bill.