RD$95 billion in pension money in BC and Reservas

[NewsWhore]

Of the RD$150 billion in pension funds invested in financial instruments, about RD$75 billion are in the Central Bank, reported Joaquin Geronimo, the superintendent of Pensions, who said that RD$20 billion were also placed in Ministry of Hacienda bonds and in private banks there are RD$45 billion in CDs, of which a good part is invested in Banreservas and in the National Housing Bank (BNV). Geronimo was speaking to editors and reporters during the Corripio Communications luncheon and he said that 1% of the pension money is in Savings banks, 9% is in S&Ls and 3.5% is in private companies. When he was asked why so much of the pension funds are deposited in the public sector, he answered that in 2003 all of the money was in the private sector and it was losing value. He said that in 2007, the system got a boost when it was allowed to invest in paper from the Central Bank and provide earnings for the money. He added that while the money that is in the Central Bank is not helping the country's development, it is helping to maintain macro-economic stability. He said that at some point the money will have to be taken out of the current locations and put to work, but he agreed that until there was a better place for it than the Central Bank or Hacienda, these were the ones that paid the most and were the safest.

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