Don't miss

Replay


LATEST SHOWS

MEDIAWATCH

'France 24' amongst French media to stop publishing jihadists' photos

Read more

THE DEBATE

Church attack aftermath - France's political fallout: who stands to benefit?

Read more

MIDDLE EAST MATTERS

Safety at any cost in Israel

Read more

ENCORE!

Film show: ‘Genius’, ‘The Secret Life of Pets’ and ‘Endless Summer’

Read more

FOCUS

Europe struggles to crack down on weapons trafficking

Read more

IN THE PAPERS

France priest terror attack: Is Europe helpless?

Read more

BUSINESS DAILY

Another drop in iPhone sales, so why are Apple shares rising?

Read more

IN THE PAPERS

Horror in the church: Priest 'assassinated by barbarians'

Read more

MEDIAWATCH

Online reactions to French church attack

Read more

Kirchner moves to nationalise private pension funds

Latest update : 2008-10-22

President Cristina Kirchner has asked the Argentine congress to approve plans to nationalise 30 billion dollars in private pension funds, saying the measure is necessary to "protect retirees and workers" amid the financial crisis.

Argentine President Cristina Kirchner moved Tuesday to nationalize 30 billion dollars in private pension funds, saying it was necessary to protect retirees in the global financial crisis.
   
"We are taking this decision in the international context in which the G-8 countries and others are seeking ways to protect banks," Kirchner said as she presented the nationalization plan, which still must be approved by the Argentine congress.
   
"We are protecting our retirees and workers," she said.
   
The government is taking the step after the 10 companies in the private pension sector suffered severe losses in the crumbling stock and bond markets, according to an official who insisted on anonymity.
   
Local media cited official sources as saying the funds had incurred losses of around 20 percent as global financial markets succumbed to panic.
   
The Argentine stock market plummeted another 11 percent Tuesday in reaction to the announcement, as the private pension funds strongly criticized the measure as a "short-term" move and insisted that their assets remained health.
   
"The market was shattered by the drastic change to the rules of the game concerning the pensions. It amounts to a confiscation of private capital," said stockbroker Luis Corsiglia.
   
The ten firms together administer around 30 billion dollars in retirement savings of 53 percent of Argentine workers, and take in about 4.6 billion dollars each year in new contributions.
   
Eight of the ten are controlled by private banks. One is a cooperative and another is controlled by state-owned Banco Nacion, the country's most important bank.
   
The political opposition accused the government of confiscating the private pension funds to help service the national debt of some 150 billion dollars.

Date created : 2008-10-22

COMMENT(S)