´Time has come´ to dip into Dominican Republic US$7.82B pension fund
Santo Domingo.- The “timehas come” to invest Dominican Republic´s pension fund of RD$352,000 billion (US$7.82billion), or 10% of GDP, in infrastructure projects to ensure higher yield profitability and spur the country’sdevelopment .
The statement is from Pensionssuperintendent Ramon Emilio Contreras, who said 70% of the funds is invested inTreasury bonds, CDs in the Central Bank and other banks, a situation he calls "unsustainable."
"We must diversifythe investment of funds to have adequate yield, but also to make them theengine of development in Dominican Republic," the official said.
He said a famousformula called "virtuous circle" entails investing the pension fund fordevelopment, to create jobs and increase contributors, which the country “unfortunately”hasn’t been able to close.
He cited Chile andCosta Rica as an example of what some countries have achieved with adiversified pension fund in works of social interest. “I believe the time hascome."