Romania defers capitalization deadline for private pension fund managers

The deadline for the private managers of mandatory pension funds (the 2nd Pillar) to increase their share capital will be extended so that the Government can negotiate with them the revised requirements.

Under existing provisions of the emergency ordinance (OUG) 114/2018, the funds must come up with some EUR 400 million worth of new capital by the end of June. The Government wants to discuss public projects where mandatory private pension funds can invest to benefit from lower capitalization requirements imposed by the OUG 114. The deadline would be changed by the new emergency ordinance to be adopted by the Government this week, finance minister Eugen Teodorovici said, according to Profit.ro.

Teodorovici also promised to amend the “greed tax” levied to banks under an emergency ordinance by the end of March.

Asked whether the Government would reduce the managers' obligation to increase their capital, Teodorovici confirmed that such a reduction is negotiated, conditioned by the investments of the funds in state-owned or public-private partnerships projects, but not high-risk projects.

(Photo source: Adobe Stock)