AUTHOR'S BIO
Ernesto Talvi
Ernesto Talvi is Director of the Center for the Study of Economic and Social Affairs, Uruguay.
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Preying on Pensions?
Guillermo А. Calvo and Ernesto Talvi Series: Latin America 2003-03-31As Argentina's economy lost access to credit in late 2001, the government resorted to desperate measures in a vain attempt to avert disaster. Privatized pension funds--created in 1994 as a result of a Social Security reform based on individual accounts vested in bonds and equities--were one casualty. The government forcibly rescheduled the public debt holdings of these funds, known locally as AFJP. It also "pesofied" these holdings, which in mid-2001 amounted to more than 60% of the pension funds' portfolios, in effect converting dollar-denominated assets into local pesos overnight. ... read Comments: 0 Recommended: 0 Read: 11063
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