The BCRA Increases the Number of Branches to Pay Social Security Beneficiaries

The Board of the BCRA has determined that financial institutions must open accounts for the payment of social security benefits at the request of ANSES paying agents in each jurisdiction. The Law on Financial Institutions establishes that banks must pay social security benefits at the request of the National Executive Branch. This way, ANSES has the power to decide upon the banks and branches where beneficiaries will collect their allowances.

The aim of this measure is to increase the number of branches entitled to pay retirements and pensions throughout Argentina, thus contributing to an even geographical distribution of paying institutions.

On another note, the Board has adopted the resolution to include well-rated corporate bonds as eligible underlying assets for reverse repos. Up to now, only BCRA instruments and National Treasury’s securities could be submitted as collateral for these transactions.

This decision had been discussed by the BCRA President, Miguel Pesce, at the meeting held on May 7 with the Head of the Argentine Industrial Union (Unión Industrial Argentina, UIA), Miguel Acevedo. The measure makes well-rated corporate bonds more attractive for obtaining financing in the domestic market.

Buenos Aires, May 21, 2020.