The Armenian Parliament has approved in its first reading a draft law proposed by the Central Bank that significantly expands the country’s pension funds' ability to invest abroad. The initiative seeks to raise the maximum share of investments in foreign economies from the current 15% to 30% of the total fund assets.
According to Deputy Governor of the Central Bank Armen Nurbekyan, these changes will allow pension funds to diversify their investment portfolios and improve their efficiency. Additionally, the draft law removes the existing restriction requiring pension funds to invest in Armenia’s economy only through locally registered funds. However, the 10% limit on domestic investments remains unchanged.
A significant innovation is the proposal to allow pension fund managers to oversee other types of funds as well. Previously, managers were restricted to managing only pension assets to ensure their focus and minimize risks.
The amendments will also impact the savings fund, with the proposed increase in the maximum share of investments in stocks and securities from 25% to 35%.
As previously reported by BMG, Armenia’s pension funds reached a historic high in November 2024, with total assets amounting to $2.6 billion (1 trillion AMD). Currently, approximately 460,000 citizens actively participate in the pension system.
