Specialists indicate that it seeks to indirectly expropriate pension funds.
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The Bolivian economy is in crisis due to the fall in its international reserves, and thousands of citizens of that country stand in long lines in order to look for dollars. This, while the administration of the president Luis Arce seeks to indirectly expropriate the pensions of contributors to finance the excessive spending generated by the economic model imposed by the former president Evo Morales.
In 2010, a legislative proposal was approved to create the Long-Term Social Security Public Manager, better known as “Manager”. This institution would be in charge of managing the pensions of the two AFP that exist in Bolivia, in a period that was never established. After thirteen years, after several corruption scandals and the politicization of the entity, it was difficult to carry out a rapid transition to the public sector.
A local media spoke with David Tuestaex-owner of Ministry of Economy and Finance of Peruwho warned of the risk that the Bolivian Government be the only one to administer the pensions. “The state is a bad administrator. said. Along the same lines, he indicated that more than ten years have passed and they still have not been able to start the manager to fully replace the AFPs. However, he affirmed that said entity “It already has a significant number of public officials earning high salaries and managing absolutely nothing.”
The former Minister of Economy described as “dangerous” forcing the AFP buy risky bonds.
“If everyone is pointing out that your country is risky, what you are saying with this is that all affiliates, who have saved their money with a lot of effort, also sink it along with the country,” held.
On the other hand, Joaquin Reyexternal advisor in public policies of the AFP Association of Perupointed out that the measures taken by the Bolivian Government they are a bad idea. “The purpose of the AFPs is to maximize profitability for workers, and when they retire they have a good pension, not to give resources to the Government”accurate.
The economist pointed out that the president of Bolivia it has taken a desperate measure to finance the accumulated debt. However, he warned that this will be detrimental to the Bolivian pension system. “It is an extremely large interference in the way in which private individuals manage their retirement pensions”he asserted.
Pension meddling
Bolivian opposition legislator Miguel Rocaassured that the Bolivian government seeks to appropriate pensions.
“It is very clear that the intention of the Government is to capture retirement savings, simply to cover the expenses of wages and salaries of the public sector”sentenced
“Since Evo Morales took power, public officials have gone from 200,000 to more than 500,000,” added.
Roca agreed with the economists Rey and Tuesta , and indicated that issuing bonds is convenient for the Governmentbut not for the pensions of retirees.
The legislator denounced that the Central Bank, the Manager and the Pensions and Insurance Authority (regulatory body)are chaired by those close to the president Arce “handpicked”despite the fact that the law prohibits it.
“All financial and monetary institutions are under the control of the president, who exercises it from the Minister of Economy who has been his pupil at the university”argued Rock.
