October 2020

21Oct

Mexico. López Obrador faces pension funds’ ire with commissions cut plan

Plans by Mexican President Andrés Manuel López Obrador to force fund managers to cut their fees as part of a pension reform have prompted threats of litigation. Read also Chile’s pension funds join global gold ETP rush Private pension funds would have to cut their commissions almost in half to 0.54 percent, from 0.92 percent, according to a bill sent to Congress in September, which is expected to be approved in both chambers in the next weeks. Read also COVID-19...

October 21, 2020
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09Oct

Latin America’s new poor

When the pandemic struck Piura, a city in northern Peru, Daniel Zapata had a part-time job with a market-research firm. The 250 soles ($70) he earned each month paid his fees for a three-year course in business administration. The covid-19 recession put paid to all that. The firm closed, and Mr Zapata, who is 20 and lives with his parents and a sister, has dropped out of his course. The family received 760 soles in emergency aid from Peru’s...

October 9, 2020
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September 2020

15Sep

The Quality of Employment (QoE) in Nine Latin American Countries: A Multidimensional Perspective

By Kirsten Sehnbruch This paper proposes a methodology for measuring the quality of employment from a multidimensional and public policy perspective in Latin American developing countries (Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Mexico, Paraguay, Peru, and Uruguay) using household and labor force survey data from 2015. The purpose of this paper is to demonstrate that the QoE can be measured using a multidimensional methodology that can inform policy makers about the state of their labor markets in a way...

September 15, 2020
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11Sep

The use of technology and innovative approaches in disaster and risk management: a characterization of Caribbean countries’ experiences

The application of technologies, research, development, promotion of innovative approaches and local knowledge to confront complex issues posed by hazards are important components of managing disaster risks and guiding informed decision-making. Hence commitments to support and enhance access to technologies and to foster innovative approaches to risk reduction, preparedness and resilient recovery are essential requirements for the management of current and future disasters in the Caribbean subregion. Considering the importance of Disaster and Risk Management (DRM), the aim...

September 11, 2020
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August 2020

21Aug

Study of an SB2 Beneficiary’s Pension Plan

By Enriqueta Mancilla-Redón, Carmen Lozano Arizmendi The individual account pension system established by the Social Security Act 1997 shows that the contributions of beneficiaries invested in retirement fund managers have had negative returns and the investment instrument in which the contributions of the retirement savings system are invested are not known. The objective of this study is to analyze the contributions in AFORES of an SB2 classification beneficiary invested in SIEFORES and the performance they have generated that the...

August 21, 2020
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13Aug

Chilean Central Bank Measures Reduce Banks’ Risks from Pension Withdrawal

Following congressional approval of a bill to allow Chileans to withdraw up to 10% of their holdings from private pension funds, for the first time the Chilean Central Bank announced a program on July 30 to conduct repos with pension funds to purchase up to USD10 billion in senior bank bonds. This will allow pensions funds to maintain their investment positions and help reduce pressures that the pension fund withdrawal process would have likely generated on bank bonds and...

August 13, 2020
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12Aug

Fitch Ratings recommendations for Brazil’s Pension Deductible Loan Regulation: Credit Neutral

Changes approved by the Brazilian Social Security National Council (Conselho Nacional de Previdencia Social, CNPS) to the pensioner deductible loan regulation in response to the economic impacts of the coronavirus pandemic are expected to be Credit Neutral for Fitch's rated portfolio of pension deductible loan (PDL) securitizations, says Fitch Ratings. Proposed changes, which seek to increase availability of credit in the economy, consider (i) increasing the maximum credit limit to 1.6x (from 1.4x) of the obligor's monthly income for...

August 12, 2020
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04Aug

Women Are Leading Latin America’s Fintech Revolution

Finance services is an industry that has been particularly male-dominated, with women holding less than 10 percent of senior positions. Despite predictions that the fintech industry could disrupt the gender balance in the traditional finance sector, female leadership in fintech remains low in most of the world. Read also How to Improve Women’s Retirement Savings: Brookings In Latin America, however, women are stepping up as fintech leaders, with five times as many female-founded fintechs as the global average. The Latin...

August 4, 2020
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July 2020

31Jul

More than 3 million Chileans seek to withdraw pensions amid pandemic

Updates with new totals from Chile´s Superintendent of Pensions More than 3 million Chileans on Thursday asked to withdraw a portion of their pension funds as a controversial law took effect allowing citizens to tap into retirement savings to buffer the economic impacts of the coronavirus. Read also ‘We’re Going for More’ Say Chileans After Pensions Reform Crosses Free Market Rubicon Long lines formed in Santiago outside the offices of Pension Fund Administrators (AFP) as Chileans sought to take...

July 31, 2020
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30Jul

Latin America Eyes Pension Billions as Welfare Alternative

Colombia is the latest Latin American country considering a plan to let workers to tap private pension savings, a move intended to soften the slump in consumer spending but which risks worsening some of the world’s deepest stock market slumps. A bill sent to congress this week would allow some Colombians to tap as much as 10% of their retirement savings. Read also Australians likely to withdraw $30 billion from pensions to weather coronavirus Chile passed a similar measure this...

July 30, 2020
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