Open

Coming up

Don't miss

Replay


LATEST SHOWS

MEDIAWATCH

Netanyahu deletes tweet featuring photo of James Foley

Read more

THE WORLD THIS WEEK

The World This Week - 22 August 2014 (part 2)

Read more

THE WORLD THIS WEEK

The World This Week - 22 August 2014

Read more

FRANCE IN FOCUS

FRANCE IN FOCUS

Read more

FOCUS

Lifting the veil over China's air pollution

Read more

ENCORE!

Tango Takeover in Paris

Read more

WEB NEWS

Calls for ISIS media blackout after execution of James Foley

Read more

IN THE PAPERS

'Steely resolve of reporters exploited by pared-down employers'

Read more

BUSINESS DAILY

US judge calls Argentina bond swap offer illegal

Read more

  • Europe launches navigation satellites to rival GPS

    Read more

  • Besieged by problems, Hollande faces unhappy return from summer holidays

    Read more

  • Iraqi Sunnis quit govt talks after mosque massacre

    Read more

  • US demands Russia withdraw aid convoy from Ukraine

    Read more

  • Rights group sues US government over ‘deportation mill’

    Read more

  • Colombian army and FARC rebels begin work on ceasefire

    Read more

  • US National Guard starts to pull out of embattled Missouri town

    Read more

  • PSG fall flat once more against Evian

    Read more

  • Fed Chair says US job market still hampered by Great Recession

    Read more

  • August 22, 1914: The bloodiest day in French military history

    Read more

  • Central African Republic announces coalition cabinet

    Read more

  • Hamas publicly executes "informers"

    Read more

  • French firebrand leftist to quit party presidency, but not politics

    Read more

  • Fear of Ebola sky-high among Air France workers

    Read more

  • US says Islamic State threat 'beyond anything we've seen'

    Read more

  • Malaysia mourns as remains of MH17 victims arrive home

    Read more

  • Turkish Foreign Minister Davutoglu set to be Erdogan's new PM

    Read more

  • Interactive: Relive the Liberation of Paris in WWII

    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)