Pension Funds: We Have Money, Unlike the Banks
October 27, 2008
The private pension funds are in a favorable position in the current financial context versus the rest of the financial system, due to the liquidity that enters monthly the accounts and that will rise in the coming period, the investment manager of the mandatory private pension fund Interamerican, Radu Craciun told AGERPRES on 15 October.
“We really have money, unlike the banks. In the context of the international financial crisis, the financing will be increasingly more difficult in Romania, and its costs will be bigger and bigger. The companies that need funds and which can no longer take banking loans that easily should consider the money of the pension funds. This is a favorable time for the start of the corporate bonds’ market. For this to happen, some big names of corporations should use this financing way”, said the Interamerican official.
Some 25-30 million euro enters monthly the accounts of the mandatory private pension funds and these sums will be bigger in the future along the rise in salaries and 0.5% annual increase in the contributions from the gross salary of the clients.
After five months in business, the mandatory private pension funds administer assets of some 500 million lei. These funds have invested some 63% of the money in T-bonds, 16-17% in banking deposits and 3-4% on BVB.
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