By law, AFP must invest money from contributors in the state, which pays pensions from the public system and a minimum pension if personal accounts are exhausted. / Emerson Del Cid.
The Central Reserve Bank (BCR) has already registered $455.42 million in new pension certificates (COPs) created by the pension reforms approved in December 2022.
However, this data, along with the date of issue and the terms of the Certificate of Transitional Loan (CFT), has been declared to be retained by the Salvadoran Pension Institute (ISP) for 7 years.
The Pension Scheme Comprehensive Law, approved in December 2022, set limits on pension fund investments: “The Certificate of Pre-Obligation (COP) issued by the El Salvador Pension Institute (ISP) limits these emissions and their No limit to risk, “no rating required,” indicated the literal “i” in Article 82.
The article said that pension funds (contributing workers’ funds administered by AFP) “must obtain a social security obligation certificate corresponding to the Salvadoran Pension Association’s annual emission programme.”
A new special law on the issuance of COPs and dissolution of Pension Obligation Trusts (FOPs) will also be approved in December 2022 to issue ISPs with “Certificates of Pension Obligations to help finance payments arising from or derived from social security obligations.” empowered. stipulates Article 6 of
These issuances do not require the Financial System Supervisory Authority or other bodies to conduct a “stock valuation” of the ISP.
The BCR reported that the COP debt was $455.42 million, while leaving the State Debt Box empty due to the Pension Obligation Trust (FOP) dissolved by the reform.
In January, February and March, BCR held pension obligations at a fixed FOP of $6,184.64 million. As of April, the FOP debt box appears to be empty, with another register showing $8,397.33 million in debt with Certificate of Transition Financing (CFT) and $455.42 million in debt with COP. , totaling $8,852.75 million.
Source: Diario Elmundo
