IPS suspends G. 100 billion investment to prioritize profitability for retirees

The Institute of Social Security (IPS) has halted a G. 100 billion investment in Certificates of Deposit (CDA) following a contentious board meeting. The decision, made to prioritize long-term investments and maximize returns for the pension fund, will lead to a new bidding process.

The board, led by President Isaías Fretes, debated the offers received for the investment. A key point of contention was the balance between managing investment risks and achieving the highest possible profitability for the insured members' assets. This debate highlighted differing interpretations of current financial regulations.

Board members José Argaña and Bettina Albertini voiced strong objections to concentrating IPS funds in a single bank. They argued that consolidating deposits, bonds, and CDAs could exceed legal limits set by Law 2225. Argaña emphasized the need for caution, stating, "If we put all our eggs in the same basket, the risk increases. We know that higher risk always means higher gain, but we also have to look after the assets of all the insured."

The institution's financial technical team, directed by Hugo Díaz, defended the processes, asserting that investments comply with legal parameters and selected entities meet security filters. However, they acknowledged that a lack of clear written guidance from the Superintendence of Pensions on classifying certain financial bonds has led to divergent opinions among the board.