NewsWhore
05-16-2006, 03:10 PM
A report in Listin Diario looks into how the banks and savings and loan institutions have benefited the most from the pension plan system that has accumulated RD$25.3 billion since 31 March. There are 1,312,331 persons contributing to the pension program. The deposits yield on average was 14.06%, or RD$3.2 billion in interest payments over the last 18 months, according to data from the Superintendence of Pensions. The diversification of the use of the funds has been slow because consensus has been difficult to reach in the board that oversees the funds. Commercial banks (50.8%) and savings and loan institutions, RD$5.6 billion (30.7%) are where most of the resources are concentrated.
Superintendent of Values (Superintendencia de Valores), Haivanjoe Ng Cortinas told Listin Diario that the pension funds mean good business for the banks that are profiting from workers funds, but he says that this is because other instruments and uses have not been defined. He said that only RD$1.65 billion has been channeled through the Superintendence of Values that recently authorized the Banco Nacional de la Vivienda y Fomento a la Produccion (BNV) to issue mortgage papers for RD$1 billion to financing housing and start diversifying the funds.
Law 87-01 that created the Dominican Social Security System, in its Art. 97, establishes that the funds can only be invested in term deposits, and certificates issued by banks, the BNV, the Instituto Nacional de la Vivienda, and regulated savings and loan associations. The funds may also be invested in mortgages of regulated institutions, publicly-offered shares, credit certificates, debt and values issued or guaranteed by foreign governments.
Link To Original Article (http://www.dr1.com/index.html#6)
Superintendent of Values (Superintendencia de Valores), Haivanjoe Ng Cortinas told Listin Diario that the pension funds mean good business for the banks that are profiting from workers funds, but he says that this is because other instruments and uses have not been defined. He said that only RD$1.65 billion has been channeled through the Superintendence of Values that recently authorized the Banco Nacional de la Vivienda y Fomento a la Produccion (BNV) to issue mortgage papers for RD$1 billion to financing housing and start diversifying the funds.
Law 87-01 that created the Dominican Social Security System, in its Art. 97, establishes that the funds can only be invested in term deposits, and certificates issued by banks, the BNV, the Instituto Nacional de la Vivienda, and regulated savings and loan associations. The funds may also be invested in mortgages of regulated institutions, publicly-offered shares, credit certificates, debt and values issued or guaranteed by foreign governments.
Link To Original Article (http://www.dr1.com/index.html#6)