The National Council of Business (CONEP) has come out against the proposal to invest pension funds in Central Bank savings certificates. Lizardo Macarrulla, the president of the Association of Industries of the Dominican Republic (AIRD), said on Miguel Guerrero’s morning CDN talk show that if Dominicans overall have preferred to earn lesser rates of interest by keeping their own savings in savings certificates deposited in commercial banks, why should the private sector support what is perceived as a riskier deposit of the collective funds in the Central Bank?. The CB is paying 45-50% on these deposits, compared to the approximate 25% rate offered by commercial banks. Those advocating the Central Bank investment are emphasizing the higher yields.
In a statement in the local press today, CONEP says that Law 87-01 explicitly states to which plans these funds can be deposited, and Central Bank savings certificates are not among them. In the statement, nevertheless, CONEP calls the CB savings certificates “an excellent and trustworthy investment option.”