Mortgages good for pension funds

[NewsWhore]

If pension funds invested in mortgages they would be more profitable, according to a report in Hoy newspaper. The Superintendent of Banks told reporters that an investment in mortgages would increase the profitability of pension funds because mortgage paper could earn 9% versus the 1% to 5% earned on deposits in savings accounts in commercial banks. Rafael Camilo said that the superintendents of banks, pensions and stocks agreed that mortgages would guarantee the investments for the Social Security program. Due to a historical general distrust of the government's ability to pay, the different entities suggest the use of mortgage bonds as a way of guaranteeing the system's ability to pay its beneficiaries. However, the mortgages would be for state infrastructure projects, because confidence in the manner in which the government is operating the economy has increased, making the operation viable.

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