Santo Domingo.- The pension fund administrators liquidated financial instruments for RD40 billion (US$714.3 million) which they had in the Central Bank to buy the same amount as Treasury bonds, with a higher yield and also allow the government to use those resources in the plans to counteract the social and economic effects of the restrictive measures by Covid-19.
The Dominican Association of Pension Funds (ADAFP) told El Dia that the Central Bank bought back the titles that the AFPs had so that they could have the liquidity for the operation.
“In order to achieve the operation that has made this special investment possible, resources have been mobilized from the Central Bank to the Ministry of Finance (coordinating the repurchase of the securities in circulation by the Central Bank from AFPs to dispose of liquidity and thus acquire the securities of the Ministry of Finance),” the ADFP said in a statement.