Velasco ensures BancoEstado's participation in pension system through "other means"

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SANTIAGO.- Today the Minister of Finance Andrés Velasco guaranteed that there are other ways that BancoEstado can participate in the social security system.

During an interview with Radio Cooperativa, Velasco stated "there are other means by which BancoEstado will be able to participate in pension funds" perhaps as a retirement fund consultant and by offering subcontracted services. Velasco clarified that these are two possibilities considered to be within the guidelines.

Despite the fact that a social security reform law was approved yesterday in the Senate, Members of Parliament rejected the idea to allow banks participate directly in the social security system, which would have supported the creation of a state administrator of pension funds or AFP.

Velasco said that the reform "is a great project, because it will completely reshape the social security system in Chile", in order to give people "peace of mind".

The Chief of Finance added that once the reform is put into action, the Treasury will spend an additional 1% of the GDP per year.