The Pension Agency Keeps GEL 1.7 BLN In 8 Banks
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1,166,737 Georgian citizens take part in the partially mandatory pension system and 6% of their monthly salary is transferred to the pension agency. At present, the assets of the pension fund exceed GEL 1.77 billion.
The Pension Agency submitted a reprot for 1H2021 to the Parliament a few days ago. According to it, the assets of the Pension Fund are placed in 8 commercial banks. At the same time, the annual interest rate totals to 11.15% for the pension assets.
"The amount is placed in 8 Georgian commercial banks, including 70.3% of the funds are placed in deposit certificates and term deposits with the fixed interest rate, while 29.7% is placed on the current accounts, which has a variable interest rate. The distribution of assets meets the limits set by the Law of Georgia on Funded Pensions and the Investment Policy Document. The average weighted annual effective yield is 11.15%. The average weighted maturity of certificates of deposit and time deposits is 2.49 years, while the average weighted maturity of the full portfolio totals 1.70 years.
The profitability of the pension fund from January 1, 2019 to June 30, 2021 was 24.5%, the inflation change amounts to 17.8%during the same period, and the change in the exchange rate of lari against the US dollar was 18.24%.
"In 1H2021, the Investment Service purchased a total of 10 new deposit certificates and term deposits with a total volume of GEL 288,200,451," the report said.
The Pension Agency has not yet started the process of investing in various securities, although the organization signed an agreement on October 1 to hire a specialized depository for this purpose. This function will be performed by the Bank of Georgia for the Agency; Through a specialized depository, the Pension Agency will be able to start investing in securities.