AFP reforms postponed indefinitely

The Chilean government will not likely address reforms to the pension fund manager, or AFP, system during President Ricardo Lagos' administration, which will conclude in March next year, local press reported. AFP regulator Guillermo Larraín said the political will does not exist to push AFP reforms through, although many proposed changes are already prepared. Among proposed reforms are measures to increase competition and transparency as well as reduce costs and encourage independent workers and small business owners to join the AFP system. There are six AFPs operating in Chile that manage some US$59.8bn in assets. Larraín added that the reforms have not been removed from the table but rather have been postponed.