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ANSeS Sustainability Fund: valued 17% in dollars in February

2024-04-17T20:20:15.852Z

Highlights: The value of the Sustainability Guarantee Fund increased by 17.1%, from US$36,958 million in January to US$43,291 million in February. The shares held by the FGS total US$5,604 million. 72.3% was invested in national securities and 12.9% in stocks. In productive or infrastructure projects, the investment was US$ 2,502 million (5.8% of the total value). The Government's megaproject proposes transferring the F GS - which some call "retirees' money" and others "grandmother's jewels" - to the National Treasury and canceling the securities. In the previous draft of the Bases law, it was proposed to transfer all the assets of theFGS to theNational Treasury. In a new version, the public securities will be canceled due to "patrimonial confusion" and will be transferred to the Treasury. The FGS was valued at 5.1% in the first two months of this year.


Milei changed the way of accounting for the assets that the FGS has. Before, it was measured by the official dollar and now by cash with liquid.


While the debate on the fate of the FGS ( Sustainability Guarantee Fund

) remains stagnant in Congress

, the

ANSeS

reported that the value of the Fund increased by 17.1%, from US$36,958 million in January to US$43,291 million in February , mainly due to the

decline in the value of the CCL dollar,

which fell from $1,251.26 to 1,071.46 and its impact on public securities.

In relation to December 2023 (US$ 41,184 million), the FGS was valued at 5.1% in the first two months.

Of that total,

72.3% was invested in national securities and 12.9% in stocks.

The shares held by the FGS total US$5,604 million. In productive or infrastructure projects, the investment was US$ 2,502 million (5.8% of the total value of the FGS)

The Government's megaproject proposes transferring the FGS - which some call

"retirees' money" and others "grandmother's jewels" -

to the National Treasury and canceling the securities - as they are an inter-public sector debt. In the previous draft of the Bases law, it was proposed to transfer all the assets of the FGS to the National Treasury. In the new version, the public securities

that constitute 72.3% of the holdings

are transferred , and will be canceled due to "patrimonial confusion."

The

main shares

held by the FGS as of February are

Ternium Argentina, Banco Macro, Grupo Financiero Galicia, Pampa Holding and Transportadora de Gas del Sur.

The Report points out that

1,335,895 people had received loans

from the FGS; 1,212,884 beneficiaries of the pension system and another 121,0111 non-beneficiaries of the system, as contributing workers.

The total stock of these loans amounted to $1,333,895 million, equivalent to US$1,245 million (2.9% of the total value of the FGS). From this it follows that the conversion was carried out at $1,071 per dollar, the value of financial dollars at that time.

In the measurements prior to the current management, the calculation of the value of the Fund in dollars

took into account the official exchange rate,

which

increased the final result.

For example, as of the second quarter of 2023 it was valued at US$60,715 million. The reduction in dollars of the value of the Fund is explained by the dollar price that is taken to convert the assets into FGS pesos.

The ANSeS explains that previously “the data were published in quarterly reports that, given the particular situation of the country's economy and with the intensification of the exchange rate, the official dollar lost representativeness and

prevented it from truly showing the real value of the fund

, since "that, at times, there was

a gap of more than 200% of the amount compared to other contributions

. "

And that "during the previous management (2019-2023) it was defined to report the value of the investment fund taking as a reference the price of the dollar at the official exchange rate of the buying rate of the Banco de la Nación Argentina."

Consequently, "with the objective of providing

greater transparency and facilitating access to public information

for all citizens, starting in January the ANSeS reports the valuation of the assets of the Sustainability Guarantee Fund (FGS)

on a monthly basis

and with a

new valuation methodology

governed by technical market values, which provides greater transparency".

"The asset valuation criteria and methodologies are defined by the FGS Executive Committee, as well as the change in the methodology."

NE

Source: clarin

All business articles on 2024-04-17

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