BUENOS AIRES - Bolivia's Congress on Friday approved a Bill to the nationalize pension fund system of the country to increase benefits and reduce the minimum retirement age.
Bolivian President Evo Morales will sign the Bill into law in the near future, a spokesman for the President.
The nationalisation of the pension scheme Fund could hinder the country's already weak ability to attract and keep capital, potentially, restrict growth and limit the amount of funds for private sector companies.
Bolivia privatized management of its national pension system in 1996, attract investments partially in a bid and the strengthening of the local capital market.
However, Mr. Morales has greatly expanded state control over the economy since his election in 2006. During this time he has nationalized or taxes on oil, natural gas, mining, telecommunications and makes company raised.
The minimum retirement age reduces the legislation up to 58 of 65 for men and 60 for women. It lowers the retirement age up to 56 for certain people working in the mining industry, according to Bolivia's state news agency ABI.
The legislation contrasted with movements in developed countries, the retirement age to increase, as increasing life expectancy rates more difficult to finance benefits make it.
The average life expectancy for a person today Bolivia born is in 65 years for men and 69 for women. That compares with 78 and 82 in the United States, respectively, according to the UN data.
A similar movement from neighbouring Argentina follows Bolivia nationalization of his private pension system.
End of 2008, Argentina Congress approved President Cristina Fernandez's to take the country's 14-year-old, pension plan 30 billion dollar system.
Critics accused to put the Argentine Government after many of the agents of the Federal Government to support federal spending received personal savings of the people.
Taking the Argentine pension systems scares fund investors and a big blow to the local capital market, shrink its volume and deprive many companies of financing previously by pension funds been available.
Spain's Banco Bilbao Vizcaya Argentaria SA and Switzerland Zurich Financial Services Ltd have Bolivia pensions, managing of were, although actual management of the funds, the Government took some time ago.
Spokesman for the company could be reached immediately for comment.
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