Last Nail in Coffin

Last Nail in Coffin

Argentina

by Jason Mitchell  Argentine president Cristina Fernandez roiled financial markets in October by announcing plans to nationalize pension funds. This involves bringing into the state-run pension system annual contributions of 15 billion pesos and funds under management of almost 100 billion pesos at the Administradoras de Fondos de Jubilaciones y Pensiones (AFJPs).  The government says it did this because private pension funds had underperformed since they were set up in 1994, and because it wanted to ensure that senior citizens receive a decent pension. However, market watchers say the true motive is to shore-up fragile government finances, which will be tested by next year

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