Time to dip into Dominican Republic’s US$7.82B pension fund
Santo Domingo.- The “time has come” to invest Dominican Republic´s pension fund of RD$352,000 billion (US$7.82 billion), or 10% of GDP, in infrastructure projects to ensure higher yield profitability and spur the country’s development .
The statement is from Pensions superintendent Ramon Emilio Contreras, who said 70% of the funds is invested in Treasury bonds, CDs in the Central Bank and other banks, a situation he calls “unsustainable.”
“We must diversify the investment of funds to have adequate yield, but also to make them the engine of development in Dominican Republic,” the official said.
He said a famous formula called “virtuous circle” entails investing the pension fund for development, to create jobs and increase contributors, which the country “unfortunately” hasn’t been able to close.
He cited Chile and Costa Rica as an example of what some countries have achieved with a diversified pension fund in works of social interest. “I believe the time has come.”
Oct 31, 2015
Category: DR News |