Pension fund managers willing to discuss investment options with Romania's Govt.

The seven pension fund managers handling the EUR 10 billion worth of assets accumulated in the 2nd pillar of Romania’s pension system said in a public message, after negotiations held with the Romanian authorities on March 5, that they are ready to “enlarge their investment universe” and include the projects suggested by the Government, Profit.ro reported.

The letter indirectly confirms rumors already in circulation, regarding the Government negotiating the capitalization requirements against draining part of the EUR 10 billion for public projects such as “schools, hospitals, infrastructure.” This is highly unusual since the European Union’s budget is a much better source of financing for such projects, furthermore in the form of grants.

The shareholders of the fund managers “have reconfirmed the interest already shown in the last years by the managers, towards the diversification of the investment universe, so that private pension funds become even more involved in financing the Romanian economy […]. Industry representatives are committed to exploring options for widening the investment universe, including looking for the European and international best practices, and will send this information to the relevant authorities."

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