Government together with Central Bank will take steps to increase availability of financial tools and formation of long-term pension savings

ArmInfo. The Armenian  government in its new program for 2017- 2022 envisages, together with  the Central Bank, to take steps to increase the availability of  financial instruments and the formation of long-term pension savings,  the infusion of which into the real sector will stimulate the  development of the economy and increase investment.

In particular, the Government provides for the end of 2018, together  with the Central Bank, to develop a capital market development  program aimed at encouraging the issuance of shares and bonds by  local companies.

Until the end of 2019, the Government envisages, together with the  Central Bank, through the necessary right regulation, to increase the  availability of financial services.

Until the end of 2020, to expand the pension savings system, the  Government together with the Central Bank will develop a medium-term  program for the development of the insurance market aimed at  introducing new insurance instruments and launching life insurance.

To recall, since January 1, 2014, a multi-step accumulative pension  system has been introduced in Armenia, mandatory for people born  after January 1, 1974 (for citizens born before January 1, 1974,  there is a distribution pension system). According to the new law of  the Republic of Armenia "On funded pensions," the basic minimum  pension will be equal to the subsistence minimum, and the basic  pension will amount to 150% of the subsistence minimum. The monthly  mandatory payments will make 5% of the salary, 5%, but not more than  25 thousand AMD, and for entrepreneurs 300 thousand AMD, the savings  account will be contributed by the state. The Constitutional Court of  Armenia in the same year on January 25 decided to suspend the RA Law  "On funded pensions" until the issue of constitutionality of a number  of its provisions is resolved.

To note, two pension funds are active in Armenia under the mandatory  funded pension system: CJSC Amundi-ACBA Asset Management (since  November 19, 2013) and "C-QUADRAT AMPEGA ASSET MANAGEMENT ARMENIA"  LLC (since November 29, 2013). The shareholders of Amundi-ACBA Asset  Management are a French company - 51% and ACBA-Credit Agricole Bank -  49%. Shareholders of LLC "C-QUADRAT AMPEGA ASSET MANAGEMENT ARMENIA"  are the Austrian investment company C-QUADRAT Investment AG - 74.9%  and the German company Talanx Asset Management GmbH - 25.1%.