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Pension Reform and Macroeconomic Stability in Latin America, Jorge Roldos

Pension Reform and Macroeconomic Stability in Latin America, Jorge Roldos
This paper reviews macroeconomic aspects of pension reforms in Latin America, focusing on financial market stability and fiscal sustainability. Concentration of pension fund portfolios in government bonds remains high, and the lack of new investment alternatives has distorted asset prices. Countries have gradually liberalized investments abroad, but remain wary of the impact on foreign currency markets. The fiscal costs of the transition to funded systems have been higher than expected, and have contributed to high debt levels. The paper highlights the importance of coordinating changes in portfolio limits with debt management policies and measures to develop securities markets
international or intergovernmental publication
Literary Form
non fiction
Main title
Pension Reform and Macroeconomic Stability in Latin America
Nature of contents
Responsibility statement
Jorge Roldos
Series statement
IMF Working Papers
Table Of Contents
Contents; I. Introduction; II. Overview of The Impact of Reforms; Tables; 1. Total Estimated Effects of Pension Reform on GDP Growth; Figures; 1. Selected Countries: Pension Fund Assets and Capital Markets; 2. Unfunded Pension Liabilities of Countries with Reformed Pension Systems; 2. Gross Returns of Pension Funds; III. Financial Stability Issues; A. Portfolio Concentration; 3. Selected Latin American Countries: Pension Funds Portfolio Composition, December 2005; 3. Selected Latin American Countries: Pension Funds Portfolio Composition4. Argentina: Share of Government Debt in Pension Funds PortfoliosB. Asset Price Distortions; 4. Pension Funds Share of Government Debt Markets; 5. Chile: Pension Fund and Asset Returns; C. Pension Fund Investment in Foreign Assets; 5. Peru: Yields on Dollar-denominated Sovereign and Corporate Bonds issued in 2003-2005; 6. Foreign Investment Limits and Allocations; 6. Chile: Pension Funds Portfolio Limits and Allocations; IV. Fiscal Sustainability; 7. Selected Latin American Countries: Determinants of Fiscal Cost of Pension Reform; 7. Chile: Central Government and Pension Deficit8. Peru: Fiscal Costs of the Pension Reform9. Bolivia: Initial Projections vs. Actual Pension Costs; 10. Selected Latin American Countries: Stress Test on Pension Deficit Projections; 11. Selected Latin American Countries: Primary Fiscal Balance and Public Debt (with and without pension reform); V. Conclusions and Policy Implications; References
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