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Lima Stock Exchange drops 28 percent - Peru pension funds lose billions

Living in Peru
Israel J. Ruiz

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© La República

As a global financial crisis continues to spread, Peruvian citizens are experiencing blows to their economies in several different ways.

Among Peruvians that have been hit hardest by the crisis are those that have pension funds, which have seen dramatic drops over the past few months.

Julio Paredes' case was published in a local newspaper. The 47-year-old man, who has a 49,338-sol pension fund, was notified - by mail - that he had lost 4,801 soles in one month.

"It's unfair that while my funds drop, pension fund companies continue to profit," said Paredes. "We should both share the loss."

A drop in the price of minerals along with the instability of the U.S. economy has taken a heavy toll on the Lima Stock Exchange, which is where pension fund companies have the majority of their clients' money invested.

The Lima Stock Exchange has lost 28 percent of its value this year alone, reported La Republica newspaper, confirming that between March and September over 85 billion soles had been lost.

The 85-billion-sol loss was compared to the national budget, which is 73 billion soles for 2009.

According to Peru's regulatory banking authority (SBS), the country's top four pension fund companies, Integra, Prima, Horizonte and Profuturo, have lost over 6.7 billion soles in the past twelve months.

The value of pension fund companies in Peru dropped to 54.17 billion in September.

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# Alan Garcia says :
6 October, 2008 [ 10:20 ]

Please do not read this article. All is untrue. Please move along.

# Alejandro Toledo says :
6 October, 2008 [ 14:16 ]

Toledo Presidente! Toledo 2011!

"Hahr-vahrd" alumni.

# Professor Toledo says :
6 October, 2008 [ 14:55 ]

Sorry, Not Harvard....STANFORD.

# CapitanDan says :
6 October, 2008 [ 21:35 ]

This has been going on for 12 months , these lossesI  am willing to bet my last paycheck that the managers of these funds didn't lose there bonuses and lived high on the hog will these investments slipped awayChau friends

# Devilmaycare says :
7 October, 2008 [ 07:05 ]

To those of you who have been openly and secretly wishing for the U.S. to fall, this is a warning. You think if the U.S. falls you will not be affected, you are wrong. There is a big difference between goverments and financial markets. Goverments have borders and financial markets are global and intertwined. If the U.S. financial market falls then so will other financial markets around the world and we will have a globally great depression. What is happening now is just a black eye to the financial markets but it can get a whole lot worse. Think about this the next time you wish for the worst for others.  

# jb says :
7 October, 2008 [ 07:09 ]

Cash is king, baby.....cash is king.  This is precisely the time when the rich get richer.