FinMin Teodorovici: Gv't decides new way of calculating minimum share capital of private pension funds

The Government has decided a new way of calculating the minimum share capital of private pension funds, Minister of Public Finance Eugen Teodorovici announced on Thursday. "Today we have adopted in the Government meeting the necessary modifications for the optimal operation of private pension managers and the diversification of the investment sphere in order to protect the interests of contributors to pension pillar II and to strengthen the perspective of a secure pension. (...) In this sense, with the agreement of pension fund managers, we have decided to increase the total share capital of funds by some 75 million euro to 136 million euro. On average, an administrator increases the share capital of a pension fund by some 10.7 million to 19.4 million euro," said Eugen Teodorovici, at the end of the Government meeting. He explained that the infusion of about 75.3 million euro will determine the development of the private pension system in Romania. "Thus, the minimum share capital required on 31 December 2019 is the equivalent in lei of 8pct of the contributions paid in the previous calendar year, diminished proportionally to the share of infrastructure investments, that is, in public-private partnership projects or in investment funds specialized in infrastructure, in total assets at the end of the previous year," Teodorovici explained. The Finance minister informed that the Government added the "minimum share capital requirement for the administration of a pension fund at the date of establishment representing the equivalent of 4 million lei calculated at the official exchange rate of the National Bank of Romania.AGERPRES (RO - author: Daniel Florea, editor: Andreea Rotaru; EN - author: Bogdan Gabaroi, editor: Simona Iacob)

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