Georgian Pension Agency makes its first large scale investment
BAKU, Azerbaijan, March 4
By Tamilla Mammadova – Trend:
A total of 560 million lari (about $200.75 million) was made in deposit certificates of high-rated Georgian commercial banks, Trend reports via Georgian media.
"A bank deposit is the least risky financial instrument. Also, negotiations are underway with several financial institutions”, said acting director of Pension Fund Giorgi Tchitchinadze.
The Pension Fund announced that the money was invested at a high interest rate and its annual interest rate is 14.9 percent instead of 9 percent. The investment period is five years.
Tchitchinadze said that once the investment period is over, the investment of 560 million lari will be doubled.
The accumulated pension system came into play in Georgia in January 2019. It is mandatory for legally employed people under 40, meaning they will be enrolled automatically. For the self-employed and those above the age of 40, enrolment in the program is voluntary.
The pension savings system applies to Georgian citizens, foreign citizens living in Georgia with permanent residency in the country and stateless persons who are employed or self-employed and receive income.
This system applies to employees of both the public and private sectors.
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