LatinNews Daily - 05 May 2021

In brief: Workers given full access to unemployment protection funds in Peru

* Peru’s President Francisco Sagasti has a issued an executive decree (010-2021) that authorises employees to withdraw 100% of the funds deposited in their respective unemployment insurance savings accounts (CTS) as an emergency measure to address any financial problems they may be facing due to the coronavirus (Covid-19) pandemic. The decree is in line with a recently approved law allowing emergency CTS withdrawals. The law contemplated allowing workers to have full access to their CTS funds and this has now been formalised by the decree. It states that employees with a CTS account can request the partial or full withdrawal of the funds and that the institutions in which these are deposited must provide it to them within two working days. In contrast to approving the withdrawal of CTS funds to provide emergency economic aid, the Sagasti administration has vetoed congressional initiatives to allow workers to withdraw money from their pension funds on the grounds that this could lead to the collapse of the pensions system.

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