QCOSTARICA – Consideration is being given to the possibility of using resources from the country’s main pension fund to finance public infrastructure construction works.
The board of directors of the Caja Costarricense de Seguro Social (CCSS) is assessing to allow the use of resources of the system of Disability, Old Age and Death (IVM),which is concentrated in government debt securities, to invest in public works.
The plan developed by the CCSS also proposes “… devoting a portion of the resources to securities abroad”.
Jaime Barrantes, Manager of Pensions at the entity, told Nacion.com that “… ‘In matters of public works there is no consent and openness in discussing the options ; whether it be 10% or 20% of the portfolio will depend on the development of projects. For investments abroad, we are making a very cautious proposal. The autonomous institution will also be examining the possibility of making investments in private infrastructure, but it will depend on the risk assessment of each project, confirmed Barrantes. ”
“… The CCSS would use the scheme of public work trusts in which the company invests resources and receives, within a certain period, a monthly income. This mechanism has been used to build, mainly university campuses. ”
As of last December, the IVM investment portfolio totaled ¢1.8 billion colones, of which ¢1.3 billion were placed in instruments of the Ministry of Finance.
Although the discussion on diversification is just beginning, the possibility of investing outside of Costa Rica has caused divisions among managers.
“The debate on whether the (investment) should be outside of Costa Rica should be more precise, from an ideological point of view, is the issue of why invest the money outside when the country needs it,” said Jose Luis Loria, CCSS representative of the cooperative sector.
Source: La Nacion