DOW JONES NEWSWIRES
Bolivian President Evo Morales has sent a bill to Congress to
nationalize the nation's pension fund system, increase benefits and
lower the minimum retirement age.
Morales is urging the legislature -- controlled by Morales's
ruling MAS party -- to pass the bill before the end of the year.
Rapid approval will be like a "Christmas present," Morales said
Tuesday, according to state news agency ABI.
Bolivia privatized administration of its national retirement
system in 1996, but the government has greatly expanded state
control over its natural resources and services since Morales's
2006 election and landslide reelection in December. He has
nationalized or raised taxes on oil, natural gas, mining,
telecommunications, and power companies.
Spain's Banco Bilbao Vizcaya Argentina SA (BBVA)and
Switzerland's Zurich Financial Services AG (ZFSVY, ZURN.VX)
currently administer Bolivia's pensions, although the government
took over actual managing of the funds some time ago. A spokesman
for BBVA declined to comment, but Spanish newspaper El Mundo
reported that the company was preparing to leave Bolivia and that
the impact would be minimal, as its profits in Bolivia total just 2
million euros ($2.7 million).
Zurich Financial Services spokesman Angel Serna said "We are
closely monitoring developments and assessing the situation," but
declined to comment further.
The new bill, which is expected to greatly expand benefits,
comes after extended negotiations with labor unions. The minimum
retirement age will be lowered to 58 from 65, with an even lower
retirement age for women with children and those working in
dangerous industries such as mining.
Pensioners who have worked for 30 years and have a salary of
3,000 bolivianos ($425) per month upon retirement will see their
benefits under the new law rise to 2,050 bolivianos from the
current 860 bolivianos, Morales said.
-By Shane Romig, Dow Jones Newswires; 54-11-4103-6738;
shane.romig@dowjones.com
(Christopher Bjork in Madrid and John Revill in Zurich
contributed to this article.)