Since 2011, the BCB issued bonds for Bs 15,000 million and paid Bs 688 million in interest, according to the Public Manager

According to Jaime Durán, general manager of the Manager, from 2011 to date, The Central Bank of Bolivia (BCB) issued bonds for Bs 15,000 million and paid Bs 688 million in interest, which in its opinion confirms that the issuing entity is an entity that complies with its commitments.

“There is no possibility that these resources can be lost For what reason? Because the Central Bank has an impeccable payment history. Just two examples: since 2011, the Central Bank has issued bonds for 15 billion bolivianos, it has paid 688 million bolivianos in terms of interest and, in addition, only in external debt, for example, last year it paid 1,400 millions of dollars,” he noted.

In time to emphasize that You are dealing with an entity that faithfully fulfills what it commits to. and remember that the Manager purchased BCB bonds worth $200 million at an annual rate of 6.5%, which within three years will raise just over $39 million.

In turn, he invested $50 million in a North American Treasury bond that It will have a yield of 4.66%, equivalent to about $6.99 million.

Furthermore, the bonds that he acquired from the General Treasury of the Nation They have a yield of 12.8%, which is equivalent to about $7.5 million.

“In the entire operation, the funds are earning $53.5 millionor equivalent to 7% of the return on the resources that are being invested,” Durán said.

This 7% return will be above the 4.12% achieved by the Manager in a year of full administration of the Comprehensive Pension System and the 2.7% that, on average, the former Pension Fund Administrators who left the country in May 2023 obtained.

Durán indicated that when the Pension Fund Administrators (AFP) left they left a fund of Bs 164,969 million ($us 24,048 million), but under the administration of the Manager it increased to Bs 180,529 million ($26,316 million) as of May 2024.

“This is going to translate into two things that are very important: the first, policyholders will have more resources in their accounts. That means that we will have more money for retirement. And second, greater performance. A higher performance translates into a higher pension,” Durán explained.

Finally, he noted that when The AFPs had low returns, retirees’ pensions were reduced, in the fraction of the accumulated balance; However, 2024 was the first year that the pension increased.