"Closed deal" seems to be the last words for the transaction on the shares and directors positions of this financial society. With those words the Pension Fund for School and High School Teachers started a new business for its members. The main goal for this new specialized financial institution that has more than thirty million dollars for its operations and more than sixty five thousand members, may be the largest pension fund in Ecuador, will be small mortgage and loans.

It seems things will not only stay like that but also it is expected to be created a prospective financial holding which will count with mutual funds, a pension administrator, a real state builder, among others. This show last legal reforms are moving financial markets.

Pension funds, as currents exists, can no longer operate, they must be involved in a legal and economic transformation process otherwise they have to be liquidated. If we realize this market can move more than one thousand million dollars (US $) it can constitute the other hand of commercial banks market which seems does not bet for the country.

The legal deadline for that transformation is September 30, 2004. For the transition period those kind of pension funds have to be administrated by funds management companies which are governed by less strong rules. A risk?

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