Peruvian Congress Debates Multiple Proposals for AFP Fund Withdrawals

Peruvian Congress Debates AFP Fund Withdrawal Proposals Lima, Peru – The Peruvian Congress is currently grappling with 23 different proposals concerning the withdrawal of funds from the country's private pension funds, known as AFPs. The Economy Commission, responsible for reviewing these proposals, is facing a critical juncture, awaiting crucial regulations from the executive branch to solidify its position. The proposals vary significantly, ranging from allowing partial withdrawals of funds to using a portion of the savings as collateral for housing loans, and also considering exceptional cases for those in need. "We don't want to collide with what we ourselves have advanced," stated Ilich Lopez, President of the Congress's Economy Commission, emphasizing the delicate balance the commission must strike. "However, we will give a minimum timeframe to the Minister of Economy to present the regulations; otherwise, we will have to proceed, and we will evaluate that technically." This statement highlights the pressure the commission is under to reach a decision in a timely manner. The commission has begun to thoroughly analyze the various proposals, hearing arguments from proponents of each. Fifteen projects propose withdrawals of up to four UITs (a unit of measurement for income in Peru), six suggest the withdrawal of 95.5% of the funds, and two focus on exceptional cases, such as terminal illnesses. The commission's careful consideration of these varying proposals underscores the importance of finding a solution that balances individual needs with the long-term stability of the pension system. The ongoing discussions in the Peruvian Congress demonstrate a commitment to addressing the financial concerns of its citizens while navigating the complexities of the pension system. The commission's methodical approach and the diverse proposals suggest a potential for a comprehensive solution that caters to a broad spectrum of needs.