Bulgaria to allow Silver Fund to invest in equity, bonds

Bulgaria to allow Silver Fund to invest in equity, bonds

Bulgaria has decided to entitle the Silver Fund, a structure set up as a reserve fund for the public pillar of the pension insurance system to compensate for the extra costs of aging, to invest in equity and bonds of local companies, deputy finance minister Boryana Pencheva said on Monday.

The proposed legislative changes will be drafted by a working group, she said.

The financial scheme, set up in 2008, was intended to accumulate concession and sell-off proceeds, to be managed actively to ensure state pensions payouts after 10 to 15 years.

The fund has so far amassed resources of BGN 1.7 billion, a scanty BGN 57.2 million of which was collected for the full 2010.

The entire resource is deposited with the Bulgarian National bank (BNB), although the Silver Fund is allowed by law to invest in obligations of companies in the European Union and in third countries.

For two years, however, its management board has failed to pick a contractor to channel the money into such instruments.

The finance ministry gave no specific reason for the proposed changes, but according to a source of Dnevnik, the move had been considered for a long time and was expected to give an impetus to the country's subdued stock market. /Source: Dnevnik/

Cookies Preferences
Choose Type of Cookies You Accept Using


These cookies are required for the website to run and cannot be switched off. Such cookie are only set in response to actions made by you such as language, currency, login session, privacy preferences. You can set your browser to block these cookies but our site may not work then.


These cookies allow us to measure visitors traffic and see traffic sources by collecting information in data sets. They also help us understand which products and actions are more popular than others.


These cookies are usually set by our marketing and advertising partners. They may be used by them to build a profile of your interest and later show you relevant ads. If you do not allow these cookies you will not experience targeted ads for your interests.