87% of pension funds are invested in covering government deficit
The president of the National Business & Industry Association of Herrera (ANEIH), Antonio Taveras Guzmán criticized the fact that 87% of the pension funds have been invested in Central Bank bonds to cover the Ministry of Hacienda deficit. Taveras said the cash should have been used to foster economic development and job creation in productive sector. Instead, the funds are producing low yields that are insufficient for a decent retirement.
He added: “It is an issue that should concern all of us, employers, workers and the authorities. From the ANEIH we propose a frank dialogue to find a solution to the issue of pensions. If we do not do something now, in a few years we will have a terrible drama of a working population in retirement, aged and without the basic income to eat at least three times a day. ”
Taveras observed that according to the quarterly reports published by the Superintendence of Pensions (SIPEN) from 2014 to 2018 the portfolio of pensions has doubled from RD$276.54 billion to RD$559.86 billion.
Source: DR1, Lisitndiario
Sep 11, 2018
Category: DR News |