Peruvian Congress Debates Controversial AFP Withdrawal

Peru's Eighth AFP Withdrawal Debate Heats Up: Deadline Looms Amid Economic Concerns Peru is facing a critical juncture as its Congress debates a potential eighth withdrawal from AFPs (private pension funds). The proposed legislation, expected to be voted on soon, has sparked intense debate, with authorities voicing concerns about its economic impact. The debate centers around the proposed withdrawal limit of four UITs (tax units), roughly equivalent to $4,000, and the potential consequences for the country's financial stability. "The deadline is fast approaching, and the debate has become quite tense," said a source close to the legislative process, speaking on condition of anonymity. The government has warned of potential negative effects on the economy, including reduced long-term savings. However, proponents argue the withdrawal is necessary to provide much-needed financial relief to citizens. Adding to the complexity, the bill also includes provisions allowing for the use of the withdrawn funds as collateral for housing loans or other forms of credit. This aspect of the proposal is also generating significant discussion. Several congress members have proposed expediting the debate to expedite its passage. The outcome of this debate will have significant implications for the Peruvian economy and its citizens.