Romania’s Government is discussing the option of deferring and significantly lowering the capitalization requirements set under the emergency ordinance (OUG) 114/2018 for mandatory private pension fund managers operating under the 2nd Pillar of the local pension system.
The proposed amendment provides that capital requirements are set at 8% of the contributions received by the fund in the previous calendar year, compared to 8% of the total assets under management under the provisions of OUG 114, Profit.ro reported.
Consequently, the funds should double their capital, compared to a ten-fold increase required under the current form of the OUG 114. At the same time, the fund managers could have their capital requirements further lowered upon pursuing investments in infrastructure projects and public-private partnership projects. The capital requirements would decrease proportionally to the share of these investments in total assets by the end of the previous year.
Separately, the range of investments fund managers are allowed to pursue will broaden to include real estate funds and non-listed firms. Under another provision of the draft ordinance, the deadline for the capital increase is deferred from May 31 to December 31.
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