“What a good time when each of us had our retirement savings in our private accountsif we were able to see the evolution of our savings”. In the midst of the controversy over the Government’s decision which obliges state entities, including ANSeS, to swap sovereign debt for dollars, Mercado Libre founder and CEO Marcos Galperin wished AFJP via Twitter.
Galperin has tweeted about the withdrawals and received a barrage of criticism, some of which he has responded to:
For example, Roberto J. Arias, San Luis economist, commented: “The capitalization system was terrible. It charged ridiculous commissions (30% on average!!!!) and then used those funds to buy government bonds (???? ♂️ )”. To which the CEO of ML responded by posting a gif full of irony: “The delivery system was better.”
He was also tongue in cheek with another user who scored it: “For you who would like to be a financial operator who manages those funds and also end up lending to the State, n. For millions of Argentines, even more women who have managed to retire, it was, is and will be infinitely better. There are conflicting interests between people and financial entrepreneurs.”
In response to former Fiscal Policy Secretary, Roberto Arias, and user @lanlook_ok, the founder of Mercado Libre blurted out: “Dad, at school they ask me to give an example of ‘Stockholm Syndrome’, I look for it in ChatGPT ? No baby, show them this thread that’s enough.”
The succession of messages continued, even if the ML holder preferred to stop with the round trip. Galperin has lived in Uruguay since the end of 2019, and his statements also coincide with the criticized pension reform that the neighboring country is facing.
What did ANSeS say about the exchange proposed by the Government?
For ANSeS, the exchange or sale of dollar bonds held by the Sustainability Guarantee Fund (FGS) for a special dual bond, in pesos adjusted for inflation (CER) or peso devaluation (dollar-linked), of both seniors, protects the Fund from a possible sharp devaluation or even higher inflation peaksSources from the organization that manages the guesthouse and pensions and is led by camper Fernanda Raverta told Clarín.
The securities that the FGS has to sell on the market – which will happen gradually – or to the Treasury have a nominal value of US$ 13,500 million, but their market value – less than 30% and declining – is approximately US$ 4,000 million .
In exchange for those bonusesthe Treasury will issue a special bond that ANSeS and other public entities They will receive their technical value, with a discount of approximately 40%, but will be accounted for at 100%.
Accordingly, the bond will yield a total of 8% per annum on the purchase price, plus adjustment for inflation and exchange rates.
ANSI extension claims that this trade reduces the volatility of the FGS and might as well have a profit of approximately US$ 2,000 million.
The Sustainability Guarantee Fund (FGS) was created following the transfer of the AFJP to the Integrated Social Security and Pension System, and includes public securities, negotiable bonds, mutual funds and loans disbursed to the productive sector. This is about 56,434 million dollars. And its function is to ensure the payment of the pension and pensions in case of contingencies.
The AFJP was eliminated in 2008, during the government of Cristina Fernández de Kirchner.
NS
Source: Clarin
