SANTO DOMINGO- In the Dominican Republic, nearly 2,000 rooms have been built for the tourism sector with the support of Dominican employees' pension funds, in the National District, Bayahibe, Miches, Punta Cana and Samaná, among other places.
According to Raúl Hernández Báez, technical director of the Dominican Association of Pension Fund Administrators (Adafp), pension funds are currently invested, by law and complementary regulations, exclusively in the financial sector and stock market.
Impact of the investment
“Nearly 32,000 families have benefited from pension fund investments made through investment funds in the tourism sector,” the executive said.
The Adafp documents also explain that the direct and indirect jobs created by these investments exceed 8,000.
Pension Fund Administrators (AFPs) invest pension funds in financial and securities market instruments with the aim of increasing them to maximize the assets that finance workers' pensions.
According to information provided by Adafp, the long-term objective in the individual capitalization system makes the resources of the members similar to investment portfolios, but with a single objective.
Hernández Báez recently participated in the V Investment Forum of the Dominican Republic Hotel and Tourism Association (Asonahores), where he indicated that between 2003-2019 pension funds have contributed on average 22% of the economic growth of the Dominican Republic (1.13% of 5.14%).
Furthermore, he emphasized that this contribution is enhanced as the system increases its investments in the real sector, contributing to business productivity and financial development.
“That support is growing, because as those funds are invested directly in the private sector, especially through the participation quota of investment funds, that contribution is intended to grow annually,” said Hernández Báez.
He explained that this contribution is enhanced as the system increases its investments in the real sector, contributing to business productivity and financial development.
Taken from Diario Libre
