RO private pension funds allowed to invest more in public debt

Romania’s financial markets’ regulator (ASF) has decided to allow the managers of private pension funds to invest more of their assets in government securities issued by the Romanian Ministry of Finance or by EU or European Economic Area Member States, announced the ASF vice-president in charge of the private pensions system, Dan Armeanu, quoted by Agerpres.

The pension funds will be allowed to increase the weight of government papers in their portfolios above the statutory 70% limit, for a period of one year.

The decision was taken in the context of the main index of the Bucharest Stock Exchange having plunged by some 30% over the past couple of weeks and the central bank having cut the refinancing rate to help finance the Government and the economy.

“Taking into account the large decreases and increased volatility in the capital markets, as well as the need to protect the participants' assets in private pension funds from large fluctuations in the price of capital instruments, ASF has decided to allow private pension managers to invest in state securities issued by the Ministry of Public Finance or by EU member states or belonging to the European Economic Area, in an amount above 70% of the total assets; the limitation is lifted for a period of one year," said Dan Armeanu, in a press release.

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