Editorial: Investing the future

POSTED: 01/17/12 12:48 PM

That the government is eager to get its hands on money that Pension Fund of St. Maarten has available for investment is understandable. The law requires the fund to invest 60 percent of its portfolio here and the other 40 elsewhere.
The one thing that still makes us hesitant to fully endorse any loan agreement between the government proper and the pension fund is that the latter is still clearing up backlogs and having to make payment plans for what should be a straightforward transaction. Very simply money is withheld from a civil servant and the government has its share to pay as well as employer, but that isn’t going right. Can we then expect that the government will meet its loan payments? That is a huge question that must be considered.
We haven’t seen the investment rules the pension fund is using, but one thing we’d like to encourage is that the review commission ensures that whatever project they are asked to invest will not just pay back the investment, but it will be a sustainable initiative that will truly ensure the country’s development. If one is going to invest in the future, they have to make sure that the money will truly lead to benefits for time to come.
So yes, while we do not encourage the pension fund to be penny pinchers, we do urge them to use wisdom when they make their decisions about how they help develop the country.

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