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MEF on AFP recall: ‘These are populist measures’

In March, a draft reform of the pension system will be presented. | Fountain: Andean

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Minister of Economy and Finance, Alex Contrerasquestioned the offer Congress about the resolution of the seventh recall pension funds. The measure has been described as “Populist and negative.”

“In general, those who have an account AFP, we do some figures, these are people with medium and high incomes. In this sense, this is not in favor of small and medium-sized businesses, people with lower incomes, but rather creates serious problems in the long term,” he said.

Contreras felt that during a pandemic, it was logical to understand the withdrawal of funds, because people did not have money to buy groceries and pay for other needs; however, currently “the context is different”.

The reform will be presented in March

Alex Contreras repeated that in March he will present a draft reform of the Peruvian pension system before the Congress of the Republic.

“We are like Ministry of Economics We have a proposal that we communicate with the relevant sectors. It should definitely be a concerted proposal,” he said during the launch of Plan Con Punche Peru Tourism.

recognized that this reform “it will have a significant financial cost”, but not applying will have a greater impact. “Otherwise, we will face high fiscal costs in the next 10 years without reform.”

The minister further indicated that there are currently various proposals from both the legislature and the private sector.

“Resolving the issue of pensions involves not only reforming the issue of pensions, because actually having a pension in Peru is a luxury. The percentage of people with access to the pension system is low compared to the rest of the region,” he noted.

Source: RPP

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