Finance minister Eugen Teodorovici said Thursday he decree was amended and Pillar II funds are now required to raise their share capital by an average EUR10.7 million, to EUR19.4 million. The seven funds on the market will have to inject a total EUR75 million into their capital.
“The minimum required share capital at December 31, 2019 is the equivalent in lei of 8% of contributions transferred in the previous calendar year,” said the minister. He added the capital requirement will be lower for fund administrators investing participants’ pension money in infrastructure projects.
The change in legislation also allows pension funds to diversify investments and invest in public-private partnerships.
The Romanian association for private pensions APAPR said the changes were “a step in the right direction”.