ASi" kUCTURE FlOR DEVELOPMENT

-~ f4' * ;
ylkj
XtLSidolkits.(1.
-~~~~. long-termn liabilities, making them ideal suppliers of
term finance for infrastructure projects.
'-o edomedthes,taks bya hue margin. p Chile has used its pension fund system to pro-
.-.; - .- mote : the : . privatization of public utilities, including.
~10).r. -A- --. _ Santiago -the subway system, Soquimich (a chemical
.. . -. mining -- Xffi............................and
concem), CT. Holdings by pension
funds account for 1O to 35 percent of the equity
t'i -S: w"e. X -*t S _ -i F capital of these ompnis,a the pension
L.~~ #2~sI: iu;•~~ ~ ~ ~ funds hold less tHan 10 prcent of their portfolios in
4#W g gj*~ s.t4~ X g 2the m
form of stocks of priva te companies.
X {9s The Philippine soca securty syst tly
*Z; t; -&~.. - 'f, ¼
X
;0. -- W
created a 4-bil1ion-peso Ioan fund targeted to Philip-
SQ . S { -s¢ .m'%
pine power projects and administered, by local
;- .*; t8'sT) A ~- 1 f~ ,1 banks. This fund is able to provide fifteen-year
W g .. -
-O 4
1oans Of uP to 200 mfllon pesos to a bank, wlhic
-- 4 thent on-lends to the power project company. The so-
~~ 4 -r ~ I~TT cial securiiy system thus assumes only the bank
.iskI The banks handle appraisal and montorng,
r g Ji;e W ffiS I g X
and they can also leverage the funds by adding
-. wa :r.:Y' . ,, . . other resources. International insurance companies
-- 1 %ga Jz e I FX-' operating in the Philippines, where there is a dearth
-t~:; :~z-