CFN announced that it will buy bonds from retired teachers, who already denounce high penalties, of up to $14,000, in the securities houses

The National Financial Corporation (CFN) will invest in the purchase of bonds for retired teachers issued by the Ministry of Economy and Finance, reported the state bank, which assured that this process began last Friday.

He explained that the bonds will be acquired solely and exclusively in duly established brokerage houses and that at the time the retiree completes the process of selling his bonds, the respective discount will be made and apart from the percentage of commission that the brokerage house charges for its management.

However, a few days after this announcement, the collection of commissions by brokerage houses has become the main complaint from retired teachers who have sought to sell their bonds. Aracely Moreno, president of the Guayas Provincial Coordinator of Retired Teachers of Ecuador Alfonso Yánez Montero, who assured that most houses charge high commission amounts of up to $14,000.

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“Most of the brokerage houses are wanting to assault the retired colleagues who receive the bonus, there have been cases that punish them up to $14,000. Desperate teachers because they have financial or health problems have fallen into the clutches of these brokerage houses,” criticized the leader. He assured that they have denounced the alleged irregularities before the ministries of Finance, Education and Labor, and entered into conversations with executives of the Bank of the Ecuadorian Social Security Institute (Biess), who in the first instance would have agreed to intervene in the purchase of the bonds, but later they indicated that they would only act as intermediaries, according to Moreno.

She commented that since last November the Biess began to negotiate with the brokerage houses with a penalty of 8%. “The brokerage houses should charge a minimum amount, however, they have been insisting on charging, at more than 8% of the Biess, high amounts,” Moreno said.

These alleged high charges were also denounced by Cecilia Paredes and Raúl Yánez, president and coordinator of the National Coordinator of Retired Teachers of Ecuador Alfonso Yánez Montero.

Through a statement, Paredes and Yánez indicated that last Friday they went to the CFN offices in Quito to corroborate the information issued on the purchase of the bonds. Then they went to the Quito Stock Exchange.

“In the CFN they told us that this week the officials will meet to establish the parameters for the established discounts, according to the stock market, prices, ages, times, etc. and possibly begin with the purchase of bonds on Friday, January 20. The information on the discounts to be made will be made through the brokerage houses”, detailed the union of retired teachers.

While in the Stock Market, according to the leaders of the retirees, it was ratified that the sale of the bonds is carried out through the brokerage houses, after the CFN establishes the different parameters.

Meanwhile, in view of the complaint that some brokerage houses block the account and do not allow trading with others, they asked that they make the request for unlocking through the emails of the corresponding brokerage houses and that they request a written response to take legal action.

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In this regard, Moreno denounced that the Education districts send retired teachers to certain brokerage houses. “We have directed retired teachers that if a certain house of value is punishing them with a lot of money, they should not accept or sign and go to others; the securities houses have begun to tell them that they cannot be changed, that they can only process with them”, assured the leader, who affirmed that it is false.

For its part, the leadership of the National Coordinator of Retired Teachers of Ecuador, Alfonso Yánez Montero, asked that its members remain calm and that while more information is obtained on the details of the negotiation process, specifically the procedure, they keep their bonds in the Bank Central, to then decide between three negotiation options, that is: directly with the brokerage houses, with the Biess or with the CFN.

Moreno calculated that teachers can get up to $200 in interest if they keep their bonds at the ECB.

CFN will invest $20 million in the purchase of bonds

The newspaper EL UNIVERSO consulted the National Financial Corporation in writing about the irregularities denounced by the retired teachers and the details of the bond purchase process.

Jorge Andrade, president of the CFN Board of Directors, revealed that the entity will invest $20 million in this process.

“This operation carried out by the Government through the CFN is carried out in defense of retired teachers who are considered a vulnerable group, given that they have negotiated the sale of said bonds at high discounts,” explained Andrade, who assured that the purchase of bonds will be made with a referential discount of 6%.

According to the official, this percentage is much lower than what is currently being negotiated in the market and represents the return that the institution obtains for making the title effective before its maturity.

Regarding the brokerage houses authorized to buy the bonds, Andrade explained that retirees must negotiate their bonds through brokerage houses, which must meet the requirements to operate in the stock market in accordance with the guidelines of the stock markets. of Guayaquil and Quito Securities. He indicated that the names of the authorized houses will be found in their website institutions, together with their tariffs. However, despite the fact that he was asked about the teachers’ complaints about the high commission charges, there was no specific response.

Meanwhile, the entity also warned that no internal or external collaborator of the CFN is authorized to request any security, directly or indirectly, from retirees or brokerage houses to expedite or facilitate any purchase process for this type of bond. “Retired teachers will not have to pay additional amounts for the sale of their bonds,” the entity assured. (YO)