Regulators look at allowing govt bodies to issue debt to boost AFP returns

Salvadorian regulators are looking at the possibility of allowing autonomous government entities to issue debt for pension fund investments, in a bid to increase private pension fund managers' (AFPs) returns to 7% from 5%. Omar Martinez, the head of the pension fund regulator, said he has seen interest in the proposal from autonomous government bodies including the ports administrator ( CEPA), the Lempa River hydroelectric commission (CEL) and the international fairs and conventions center (CIFCO), according to a report in local daily newspaper La Prensa Grafica. Martinez said the plan would also allow local municipalities to issue debt for infrastructure projects, according to the report. Martinez' office is drawing up a bill proposal with the collaboration of the securities regulator. He said the AFPs are also on board with the idea. "They're interested in the project and there is a good union between the private and public sectors, because we're clear that we have to improve the profitability of the investments," Martinez said, according to the report.