He states the objective is to seek to increase the profitability of these resources.
Santo Domingo.- The president of the Dominican Federation of Merchants (FDC), Ivan Garciaadvocated that the investment of pension funds continue to diversify in an attempt to increase their profit margins.
García considered that in this way the administrators of these resources would be able to increase the amount of pensions and continue consolidating the Dominican Social Security System.
The main leader of the entity that brings together various organized trade organizations understands that the AFP and the Superintendency of Pensions, should be more “aggressive” in the investment of the savings they manage in order to increase their profit margins.
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“It is not just about investing in certificates of deposit from the Central Bank or in sovereign debt of the Dominican Republic, but in profitable companies, for example, in the hotel sector, an attractive business for this type of investment”Garcia said.
He argued that part of the pension funds should have been invested in the Punta Catalina thermoelectric plants because they would generate a significant level of profit that are profitable.
“That and other types of investments, such as in the hotel sector, are profitable, and that would be a way to guarantee an increase in the savings that workers have in the AFPs, which would translate into an improvement in the amount of pensions”emphasized the president of the Dominican Federation of Merchants.
He also supported the investments in dollars that pension fund administrators have been making, given the profitability of doing so in hard currency.
Likewise, the representative of the commercial sector in the country, favors the integral modification of the Law through which the Dominican Social Security System.
Garcia understandsthat this legislation, whose regulations date back more than 20 years, needs to be readjusted to the new application requirements, and in this sense he recalled that the main commercial and union entities submitted to the Economic and social Counciltheir suggestions around the points they understand need to be modified.
