The Economic and Social Stabilization Fund (ESSF) was established on March 6th, 2007 with an initial contribution of US $2.58 billion, much of which (US$ 2.56 billion) was derived from the old Copper Stabilization Fund, which was replaced by the ESSF.

The ESSF is an additional source of financing for the Central Government, and its resources are mainly used to stabilize public finances over time in the event of abrupt changes in the economic cycle and extraordinary events. Notwithstanding the above, it also allows the financing of fiscal deficits, the annual contribution to the Pension Reserve Fund, and the amortization of public debt.

According to the Fiscal Responsibility Law, the ESSF receives each year the positive balance resulting from the difference between the effective fiscal surplus and the contributions to the Pension Reserve Fund and to the Central Bank of Chile, discounting the payment of public debt and advances made the year before.