View source for Peru Enacts Law Allowing Second Withdrawal Of Funds From Pension...

<br>By Marco Aquino<br> <br>LIMA, Nov 18 (Reuters) - The Peruvian government on Wednesday enacted a law that allows citizens a second withdrawal of funds from the private pension system in order to ease the economic blow from the coronavirus pandemic, according to official newspaper El Peruano.<br> <br>Peru is digging out from a political crisis that has rattled a country already hard hit by COVID-19 and what is expected to be its worst economic contraction in a [http://search.usa.gov/search?affiliate=usagov&query=century century].<br> <br>Ousted former President Martin Vizcarra had steadfastly opposed the bill as it made its way through Congress, but his successor, Manuel Merino, signed it on Nov.<br><br>15. Merino resigned on Sunday after the Andean nation was rocked by protests following Vizcarra's removal.<br> <br>A new interim president,  [https://www.kynghidongduong.vn/tours/tour-du-lich-trung-khanh-cuu-trai-cau-thanh-do-ha-noi-sai-gon.html tour cửu trại câu] Francisco Sagasti, took office on Tuesday. Sagasti, who is seeking to defuse tensions, has not commented on the law since taking office.<br> <br>The measure, passed almost unanimously, authorizes the withdrawal of up to 17,200 soles ($4,765) from the private retirement system by members who have not contributed for more than 12 consecutive months.<br> <br>The Economy Ministry and Central Reserve Bank had both expressed concerns that allowing a second withdrawal could impact the solvency of the pension system, as well as the retirement funds of its members.<br> <br>In April, Peru's Congress enacted a similar law allowing people to withdraw up to 25% of their holdings in private pension funds.<br><br>It allowed for  [https://www.kynghidongduong.vn/tours/tour-du-lich-trung-khanh-cuu-trai-cau-thanh-do-ha-noi-sai-gon.html kynghidongduong.vn] a maximum withdrawal of 12,900 soles ($3,573).<br> <br>Between January and July,  [https://www.kynghidongduong.vn/tours/tour-du-lich-trung-khanh-cuu-trai-cau-thanh-do-ha-noi-sai-gon.html tour cửu trại câu giá rẻ] the pension funds liquidated assets in local and foreign markets worth nearly $6.7 billion for their affiliates, according to the central bank.<br> <br>The funds have operated in the country for almost three decades.<br><br>(Reporting by Marco Aquino Writing by Dave Sherwood Editing by Paul Simao)<br>