Irakli Garibashvili, Prime Minister of Georgia met the Investment Board Members of the Pension Fund of Georgia on March 16.
Meeting held at the Government Administration was focused on the role plaid by the Pension Fund in the development of the economy of Georgia and significance of long-term investment resources was highlighted towards this end.
Results of the past performance and plans for future have been reviewed within the discussion of the Pension Fund of Georgia. Investment Board Members presentedi initiatives for the improvement of the legal framework. It was noted that work is actively progressing with the Government of Georgia towards this end with an aim of making the investments of the Fund more effective.
In line with the Law of Georgia on Pension Savings, investments of the Fund are made solely in the low-risk portfolio at this point in time. Pension funds usually play an important role in the development of national economies. Namely, they make available a long-term investment resource denominated in the national currency, which is viral for implementing long-term investment projects. Investment funds are predominantly channeled to the economy of the country through the capital market, which in turn promotes the development of the latter. It is believed to significantly increase savings in Georgian economy, thus promoting the balancing of interest rates on bank loans.
Currently almost 1.1 million people are engaged in the pension scheme. Volume of total assets amounts to 2.17 BLN GEL, out of which 309 MLN GEL is an yield on investments. Current annual effective rate of return is 11.6%, while 34% has been earned since the launch of operation by the Pension Fund of Georgia. At present, funds are placed in 8 commercial banks and investment tools denominated in the national currency, whereby 62% of assets are concerned in deposit certificates and 38% - in recurrent yield accounts.
Pension Fund of Georgia is an independent legal entity of public law, which is accountable for the implementation, management and administration of a saving pension scheme.
Meeting with the Prime Minister of Georgia today was attended by Olivier Russo, Chairman of the Investment Board of the Pension Fund of Georgia; Jean-Frederick Polsen, Deputy Chairman; Michael Ridley and Timo Viperkenta -f Board Members; while the authorities included Levan Davitashvili, Deputy Prime Minister and Minister of Economy and Sustainable Development in Georgia; Lasha Khutsishvili, Minister of Finance of Georgia; Ilia Darchiashvili, Head of Government Administration; Giorgi Danelia, CEO of the Pension Fund of Georgia.
