This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/7682877.stm
The article has changed 3 times. There is an RSS feed of changes available.
Version 1 | Version 2 |
---|---|
Argentina to take over pensions | Argentina to take over pensions |
(about 9 hours later) | |
Argentina's President Cristina Fernandez has signed a bill that will nationalise the country's 10 private pension funds. | Argentina's President Cristina Fernandez has signed a bill that will nationalise the country's 10 private pension funds. |
The move will put the government in control of almost $30bn (£18bn) of investments and is aimed at protecting them from the global market turmoil. | The move will put the government in control of almost $30bn (£18bn) of investments and is aimed at protecting them from the global market turmoil. |
Shares slumped amid fears of the move's impact and critics accused the government of trying to grab the funds. | Shares slumped amid fears of the move's impact and critics accused the government of trying to grab the funds. |
The bill needs the backing of Congress, where the ruling party has a majority. | |
'Solid mechanism' | 'Solid mechanism' |
Ms Fernandez said that Argentina needed to protect those with pensions amid falling stock prices around the world. | Ms Fernandez said that Argentina needed to protect those with pensions amid falling stock prices around the world. |
However, expectations of the announcement sent Argentine shares 11% lower and critics said the government simply wanted its hands on the money ahead of a tough budget year. | However, expectations of the announcement sent Argentine shares 11% lower and critics said the government simply wanted its hands on the money ahead of a tough budget year. |
As the 10 private pension funds are the country's largest institutional investors, the announcement also hit the value of the peso and Argentine bonds. | As the 10 private pension funds are the country's largest institutional investors, the announcement also hit the value of the peso and Argentine bonds. |
Amado Boudou, head of the National Social Security Administration, which will take over the funds, said the "failed experiment" of private pensions was finished. | Amado Boudou, head of the National Social Security Administration, which will take over the funds, said the "failed experiment" of private pensions was finished. |
But the pension administrators defended the system, saying it had a "solid mechanism" that had seen an "almost constant growth trend in the 14 years of its existence". | But the pension administrators defended the system, saying it had a "solid mechanism" that had seen an "almost constant growth trend in the 14 years of its existence". |
Union leaders have welcomed the nationalisation move. The commissions on the pensions and the lack of a guaranteed minimum pension has made the private system unpopular with many Argentines. | Union leaders have welcomed the nationalisation move. The commissions on the pensions and the lack of a guaranteed minimum pension has made the private system unpopular with many Argentines. |
Congress, controlled by Ms Fernandez's Front for Victory political grouping, will debate the bill next week. | Congress, controlled by Ms Fernandez's Front for Victory political grouping, will debate the bill next week. |