NewsWhore
08-13-2010, 04:20 PM
The Central Bank said yesterday that arguing that the government is seeking to make use of the pension funds through a legislative proposal concerning mortgages that will be sent to the National Congress shows a lack of legal understanding and a lack of knowledge. The bank said that the proposal was the result of a consensus between both public and private sectors, including workers, and far from being a mechanism to favor the use of pension funds by the government, constitutes a legal platform of vital importance for promoting the development of the mortgage market, under the leadership of the private sector.
The Central Bank called on all sectors to join forces to support the creation of the proposed new mortgage instruments.
Neither is the government, as the "issuer", included in the project between the entities authorized to issue the instruments of the mortgage market. "In other words, this proposal is not conceived or designed in order for the government to garner the money from the pension funds in that way". The Central Bank indicates that the commentators ignore the fact that the pension fund administrators (AFP) are those that have the option, not the obligation and under the procedures that are established under the Social Security Law and its regulations, of deciding freely in which instruments of the spectrum that will be offered by the mortgage market.
Central Bank reports that of the RD$107 billion in the pension fund as of 30 June 2010, 48.8% is deposited in banks, 37.8% in the Central Bank, 8.8% in government certificates and 4.6% in company certificates.
The president of the National Council of Business, Lisandro Macarrulla spoke in favor of the bill but called for the elimination of tax exemptions on construction materials, describing it as a virtual subsidy to the projects, which would be unfair competition.
http://www.bancentral.gov.do/
More... (http://www.dr1.com/index.html#5)
The Central Bank called on all sectors to join forces to support the creation of the proposed new mortgage instruments.
Neither is the government, as the "issuer", included in the project between the entities authorized to issue the instruments of the mortgage market. "In other words, this proposal is not conceived or designed in order for the government to garner the money from the pension funds in that way". The Central Bank indicates that the commentators ignore the fact that the pension fund administrators (AFP) are those that have the option, not the obligation and under the procedures that are established under the Social Security Law and its regulations, of deciding freely in which instruments of the spectrum that will be offered by the mortgage market.
Central Bank reports that of the RD$107 billion in the pension fund as of 30 June 2010, 48.8% is deposited in banks, 37.8% in the Central Bank, 8.8% in government certificates and 4.6% in company certificates.
The president of the National Council of Business, Lisandro Macarrulla spoke in favor of the bill but called for the elimination of tax exemptions on construction materials, describing it as a virtual subsidy to the projects, which would be unfair competition.
http://www.bancentral.gov.do/
More... (http://www.dr1.com/index.html#5)