Answer to Argentina; Latin American countries study pension diversification.

Pensions & Investments, June, 2002 by Ciampi, Thomas V.

In the wake of the collapse of the Argentine AFJP system, concurrent congressional debates in other Latin American countries are weighing the need for international diversification in each country's private pension fund area. In Brazil, regulators and industry leaders are brushing aside concerns about potential collateral damage from neighboring Argentina's default and devaluation, while acknowledging that sending money offshore continues to be politically and fiscally unfeasible given Brazil's intensifying need for internal financing and its shrinking capital markets.

Beginning in late 2000, the Argentine government called on the private AFJP pension managers to help it meet its debt obligations, despite provisions that capped at 50% AFJP exposure to...

Read the rest of this article with a Free Trial at HighBeam Research.

Premium Content Partnership | HighBeam Research provides an in-depth online archive library of reference works.