Congress debates proposal to release pension funds for mortgages

The Congress of the Republic is in the process of debating an important issue that will directly impact the economy of thousands of Peruvians. It concerns the proposal to release up to 50% of the Individual Capitalization Account fund for the payment of mortgages, as part of the pension reform that will be discussed in the Economic Commission. This new text, which has been distributed among congress members, introduces a temporary provision that would allow affiliates to use a significant portion of their pension funds to meet their mortgage obligations. As stipulated in the sixth additional temporary provision, the exceptional withdrawal of up to half of the CIC fund is authorized to be allocated to the payment of existing mortgages at the time of the law's promulgation, for a period of up to 12 months. It is important to highlight that this measure would not discriminate between affiliates who own a home as their primary residence and those who have invested in additional properties. Likewise, it would not limit those who have already used a portion of their funds for the down payment on a first home, meaning they could access up to 75% of their housing funds if the provision is approved. While the proposal aims to provide financial relief to those facing difficulties in meeting their mortgages amid the economic crisis caused by the pandemic, it is essential to carefully analyze the long-term implications of this measure. The possibility of significantly reducing affiliates' pension funds could raise concerns about financial security in the future. The discussion surrounding this proposal is likely to spark intense debate in Congress, where both the immediate benefits for citizens and the potential long-term consequences of allowing such a significant withdrawal of pension funds must be considered. It is crucial to seek a balance that protects the interests of affiliates while ensuring the sustainability of the pension system in the country.