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Government Won’t Veto Pension Withdrawal Bill

PERU
  • Finance Minister Jose Arista said yesterday that the government won’t veto the pension withdrawal bill it has opposed because of the high support it has obtained in congress, adding that it would not make sense to delay it. As a recap, congress voted last week to approve the bill that could lead workers to pull up to $7bn from their private pension accounts.
  • Separately, a congressional committee approved a bill yesterday that would allow workers to withdraw an estimated $734mn from the CTS, the restricted unemployment insurance funds. BBVA say that this is a relatively small amount and should be manageable. The Peruvian Sol weakened marginally yesterday, but outperformed peers in the region. BBVA note that the BCRP has remained active in the market, but has generally allowed the currency to fluctuate in recent days, although it will likely be ready to prevent any more significant setbacks.
  • On the data front, the calendar remains empty, with the next release of note being April CPI on May 01.

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