Mandatory private pension funds will follow the old capital requirement rules until the end of May.
A controversial emergency decree introduced in late December 2018 required Pillar II funds to significantly raise their share capital this year, in two stages, until June 1 and December 31. Additional capital requirements amount to around EUR800 million.
Under the draft decree published Tuesday, administrators of private pension funds will have to raise their capital by half the required amount by December 31.
The government plans to adopt the draft in Thursday’s Cabinet meeting.
Pillar II funds managed assets of EUR10.2 billion for 7.25 million contributors at the end of 2018. They had average annualized yields of 8.03% throughout the existence of the system which was started in 2008, the highest yield among similar pension systems throughout Europe.
Pillar II funds are the biggest institutional investors on the Romanian stock market.