Last week, during the ‘Todos por la Economía: Perspectivas 2023’ forum, organized by Corficolombiana, José Roberto Acosta, director of Public Credit of the Ministry of Finance, stated that the portfolio does not fully agree with the proposals initially presented by the National Government for a pension reform in the country that would be presented at the beginning of next year.
(What is known about the pension reform project that Mintrabajo enlists).
The reason, as he explained, has to do with the fact that pension fund resources would be reduced from the public debt market, which would impact finances.
“That first draft, presented ten days ago, is that, a draft with which, we at Crédito Público stated, we do not fully agree, because it would reduce resources from pension funds to the public debt market”he claimed.
Acosta also stated that it is essential to respect pension savings and their important role in the local public debt market.
“The savings stock (pension) has allowed the transformation of the yield curve, which facilitates the leverage of the real sector of the economy and also of the Government”, added the official.
(Funds want to provide technical figures in the pension reform).
José Roberto Acosta assured that the Pension Fund Administrators (AFP) have an important ally in the Directorate of Public Credit “to rationalize the pension reform proposals“like those that were presented a few weeks ago by the National Government.
“The role of the Ministry of Finance is just going to start playing there. A pension reform that requires protecting that capital stock and its role within the markets, not only for public debt but also for corporate debt and stocks, which is so absolutely withered in Colombia”indicated.
(The Petro government will present a pension reform proposal in 2023).
Additionally, he stated that he “it seems very interesting” the idea of TES indexed to the minimum wage. “If I want to retire, I start saving and I’m buying minimum wages in the market from now on for my old age. The insurers now use the pension funds also for life annuities,” said.
In addition, the TES indexed to the minimum wage become “a ‘match’ so that this, or any government, overflows into irresponsible increases in the minimum wage, which can unanchor inflationary expectations because recovering them again is complicated.”
“Ideas such as TES indexed to the minimum wage, which have particularities, not only of coverage for investors, but also of a kind of self-control, can mean a valid tool in which we are studying,” affirmed the director of Public Credit.
ECONOMY AND BUSINESS
