Uruguay Bankers’ Pension Fund to Sell Local Bonds in Rescue Plan
- Fund is planning to sell $400 million in local bonds
- Government seeks to fix deficits at private pension funds
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The pension fund serving Uruguay’s financial industry workers is set to sell as much as $400 million in local currency bonds as part of a rescue plan for the deficit-plagued institution.
Financial firms and labor union AEBU agreed to a plan that would see the fund raise about $1.15 billion through peso bonds and employer and employee contributions to cover a deficit of about $900 million through 2035, said Barbara Mainzer, executive director at ABPU, the trade group representing private sector banks. The government-backed plan is still pending congressional approval, which it’s widely expected to get.