Ecuador PF To Cut Govt Debt Purchases

Ecuador’s public pension fund will trim acquisitions of government debt to about 30% of the $1 billion set aside in 2011.

Ecuador’s public pension fund will trim acquisitions of government debt to about 30% of the $1 billion set aside in 2011, Bloomberg reports. The country’s largest mortgage lender, Banco del Instituto Ecuatoriano de Seguridad Social (BIESS), will invest directly in public works instead of buying the bonds as it is considered to be more profitable.

The fund, which manages $6.9 billion, will acquire nearly $200 million of locally-traded securities in 2011. The bank will lend about $150 million this year to help companies expand factories and improve productivity and invest $195 million in private infrastructure projects. The bank may offer $845 million in 2011 for homes and grant $550 million in consumer loans, said CEO Efrain Vieira.

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