IMF recommends reviewing AFAPs' foreign investment mandate

The IMF has recommended reviewing the foreign investment mandate for Uruguayan pension funds (AFAPs), and to start providing pension savers with different portfolio options tailored to their needs. There is scope to strengthen financial sector resilience further and bolster medium-term growth by building on recent progress. A strategy to develop a capital market that promotes efficient allocation of financial resources is needed, the IMF said in a report after its Article IV consultation in the country. It will also be important to enhance financial crisis preparedness and contingency planning, and ensure adequate funding for supervision. "Finally, a dynamic, yet sound, banking system would benefit from a more level playing field among banks," the IMF said.