A key agreement between Prime Minister Robert Fico and private pension fund management companies is in the pipeline, the daily Sme wrote on Tuesday, March 3. The daily said that Fico appealed to the pension fund management companies on Saturday, February 28, asking them to suggest how they want to help the Slovak economy in the time of economic crisis.
The companies already knew their answer: long-term resources they administer in the pension funds might be invested in Slovakia’s highway construction. They would be able to allocate about €660 million for the highway construction in a relatively short time.
The pension funds could make loans to the state or directly to construction firms. If they lend to the state, about half of the assets of the pension fund management companies would be in state securities.
Fico has not yet given public approval to the idea. According to information available to the daily, he will be meeting with shareholders of the pension fund management companies on the evening of March 3.
There are six pension fund management companies in Slovakia that administer the pension savings of employees and the self-employed who have chosen to participate in what is known as the second, private pillar of the pension scheme in Slovakia. Those who choose to participate may allocate half of their required pension contributions to this second pillar, rather than to the state-administered social insurer. Sme, SITA
Compiled by Zuzana Vilikovská from press reports
The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.
3. Mar 2009 at 14:00