Argentina Seizes Pension Funds

STORY:
From the floor of Argentina's stock exchange, traders watched as the country's benchmark index continued its plunge on news that private pension funds could be nationalized.

President Christina Fernandez signed a controversial bill on Tuesday that would allow a government takeover of some $30 billion in pension funds.

[Christina Fernandez, Argentine President]:
"We are, sincerely I believe, at the end of an era at the world level, and I believe that what we are doing here today is a strategic decision in this international framework."

The announcement drew applause - and drumbeats - from some who said the nationalization would guarantee pensions at a time of global market turmoil.

But critics see the plan as a money grab for a tight budget year as a drop in commodities hits one of the world's top exporters of grain.

Some workers took to the streets of Buenos Aires in protest.

[Aida Bergerot, Protester]:
"We are 11 thousand employees with families, and no one is giving us any explanation."

Argentina suffered the largest ever government default in 2001. Its debt obligations are expected to reach $12 billion in 2009.

The country has a history of raiding pension funds, leading to doubts the government would protect retirement money.

The bill must still clear the nation's Congress, where it faces a bumpy ride.

Category:

News & Politics

Tags:

• ntdtv
• ntd
• news
• Argentina
• Pension
• Funds

[plojka1]

@Txsray Argentina's economy is growing double that of Brazil's right now. I don't agree with nationalisation but something's working here for Argentina.

[davegsucks]

@Txsray thats why i hate my country, it's full of idiots

[Txsray]

Only idiots think nationalization of pension funds will guarantee anything good.