SOCIAL PROTECTION AND THE GUARANTEED SUSTAINABLE FUND IN ARGENTINA

Abstract

This paper deals with the Fondo de Garantía de Sustentabilidad delRégimen Previsonal Público de Reparto (FGS), a fund created to financiallyguarantee the social protection of the retired and insured Argentinians. In itsfirst part, the portfolio composition of the FGS is analysed and some of itsimplications are discussed. In the following section, reasons for the (re)Statization are presented, highlighting the resource availability from theAdministradoras do Fondo de Jubilaciones y Pensiones, administration taxes,amongst other indicators. The paper concludes that the asset concentration in publicdebt bonds limits its availability, introducing consequences on the pensionsystem. Also the use of resources in the funding of productive projects (orinfrastructure) by the national government brings about doubts on the futureavailability of the involved resources.