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Tuesday, May 21, 2024

Georgian PM discusses Pension Fund legislative initiatives with Investment Board members

In today's meeting between Georgian Prime Minister Irakli Garibashvili and members of the Pension Fund Investment Board, the PM's and board members' main focus was to discuss the role of the Pension Fund in the development of the economy, the importance of long-term investment sources, and legislative initiatives for the Fund.

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In today’s meeting between Georgian Prime Minister Irakli Garibashvili and members of the Pension Fund Investment Board, the PM’s and board members’ main focus was to discuss the role of the Pension Fund in the development of the economy, the importance of long-term investment sources, and legislative initiatives for the Fund.

The Government Administration stated, during the meeting, the importance of “active work” between the country’s government and members of the Board was also noted.

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Moreover, along with the development of the capital market and balancing the market interest rate on loans, the importance of Pension funds for the long-term investment capital of the national currency for the implementation of long-term investment projects in the country was also noted.

As per the reports, as of today, up to 1.1 million individuals are engaged in the funded pension scheme in Georgia, with the total asset value amounting to GEL 2.17 billion ($675.1m/€614.7m), of which the accrued interest on investment activities is 309 million GEL ($96.1m/€87.5m).

Furthermore, the funds are fully invested in 8 commercial banks in Lari currency, with 62 % of the assets in deposit certificates and 38 % in current benefit accounts.

According to the government, the current annual adequate profitability is 11.6 per cent, while the profitability since the fund system’s inception is 34 per cent.

In Georgia, the accumulated pension system went into force in January 2019. It covers Georgian nationals, foreign citizens with a permanent residency in Georgia, and stateless people who are employed or self-employed and receive a salary. It applies to employees from both the public and private sectors.

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