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Interest

Lower interest rate can release $ 160 billion to corporations, says study

This article was translated by an automatic translation system, and was therefore not reviewed by people.


 


With the fall in interest rates, pension funds will reduce investments in government securities and provide more resources for their billionaire portfolios for companies, especially in the area of infrastructure, study of the Economic Development Bank (BNDES ). The private sector could make available a significant amount of R$ 160 billion, if the application of these funds in government bonds fell, for example, to a level similar to that of Chile. BNDES technicians will ponder, however, that the change will occur only gradually and in the long term.

According to the Brazilian Association of Private Pension Funds (Abrapp) in March, 48.8% of its R$ 458 billion of assets of Brazilian pension funds were in government securities. In Chile, this percentage is 13%, according to the Organization for Economic Cooperation and Development (OECD) collected by the BNDES. The latest information-OECD, 2006.

To achieve the level Chilean pension funds complement Brazilians had to withdraw from the public and migrate to the private sector more than 35% of its assets. The neighbor has a profile similar to that of rich nations. In the United States, Japan and Germany, at least two thirds of the investments of pension funds is for the private sector. In Brazil, Mexico, Czech Republic and Turkey, the concentration of government bonds is about 50% to 75%.

"The crisis has brought new opportunities for pension funds, with positive effects on the country These funds will begin to play a complementary role to the BNDES, as logic is the same," said André Albuquerque Sant'Anna, an economist at the bank. "The funds will seek applications to ensure profitability in the long run, as the infrastructure," added Gilberto Rodriguez Borca Junior, also of BNDES.

The global turmoil has allowed an aggressive reduction of interest, without inflation. With the Selic rate at 8.75%, investment in government bonds - which guaranteed high performance and security - are beginning to be disadvantageous to the complementary pension funds.



Source: State Agency

This article was translated by an automatic translation system, and was therefore not reviewed by people.

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