Peru Congress Passes a New $7.5 Billion Pension Withdrawal Bill

The Peruvian Congress has passed a new bill allowing workers to withdraw up to $7.5 billion from their private pension funds. This move is seen as a significant development, as these pension funds have been major buyers of the country's sovereign bonds. The bill, which was approved late on Wednesday, gives workers the option to withdraw up to 95.5% of their pension savings, with a maximum withdrawal limit of 17,600 soles (approximately $4,500). This measure is intended to provide financial relief to citizens during the ongoing economic challenges brought about by the COVID-19 pandemic. The passage of this bill is likely to have implications for Peru's financial markets, as the withdrawal of funds from private pension funds could potentially impact the demand for government bonds. However, the full extent of the impact remains to be seen as the details of the implementation are still being finalized.