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First private pension fund may be established in Azerbaijan in 2013

Business Materials 2 January 2012 11:47 (UTC +04:00)

Azerbaijan, Baku, Jan 2 /Trend A.Akhundov/

Private pension funds can be established in Azerbaijan in 2013, the chairman of the State Social Protection Fund Salim Muslimov told reporters on Friday.

"The state program on development of the insurance pension system envisages the launch of pension funds in 2013. The legal framework for such funds should be prepared in 2012 in order to do it," Muslimov said.

Muslimov said the process of studying other countries' experiences in this area is completing now.

The delegation of the State Fund has already visited Germany, Turkey, Poland and Kazakhstan.

Radical reforms have been held in Kazakhstan. The country abolished state pension fund 10 years ago and created 15 -16 private funds. They lost half a billion dollars during the crisis, four funds became close to bankruptcy, and only the government support helped them. Pension funds in Germany lost 40 percent of their funds during the crisis.

Labor pension in Azerbaijan consists of two parts, base and insurance. Currently, the basic pension in the country is 85 manat.

Official exchange rate on Dec 30 is 0.7865 AZN/USD

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