Putin rules to use wealth fund money to cover pension deficit - All News - PRIME Business News Agency - All News Politics Economy Business Wire Financial Wire Oil Gas Chemical Industry Power Industry Metals Mining Pulp Paper Agro Commodities Transport Automobile Construction Real Estate Telecommunications Engineering Hi-Tech Consumer Goods Retail Calendar Our Features Interviews Opinions Press Releases

Putin rules to use wealth fund money to cover pension deficit

MOSCOW, Jun 13 (PRIME) -- Russian President Vladimir Putin has ordered the government to decide how many resources from the National Wealth Fund, designed to secure the pension system, could be used to cover the deficit of the pension fund, as cited by RIA Novosti on Thursday.

“Depending on the parameters of a formula to calculate pensions, we need to set limits within which we can use the resources of the National Wealth Fund to cover the deficit of the pension fund,” Putin, who is serving his third term in the Kremlin, said in his budget address to the government.

Putin also said that resources of the National Wealth Fund and pension savings have to be used to finance infrastructure projects, whose implementation could help spur growth in a stagnating economy, among other measures.

Russia’s economy, which has been slowing down since 2012, grew only 1.8% in the first four months of the year and still shows no signs of breakthrough, Deputy Economic Minister Andrei Klepach complained recently.

Putin said that a reimbursement of the funds into the National Wealth Fund must be guaranteed and a clear mechanism of project selection and money transfer has to be worked out. He also called for the creation of new instruments to attract private investments into infrastructure and use the mechanisms of a public and private partnership.

Putin has also suggested that the government has to consider alternative ways to administer the resources of the Reserve Fund, meant to protect the budget against a fall in oil prices, and the National Wealth Fund instead of the Russian Finance Agency, whose creation has not been fully approved by the parliament.

“There was a proposal to create the Russian Finance Agency to manage the resources from the Reserve and the National Wealth funds. But an attempt to implement this idea has uncovered a slew of unsolved problems. It is necessary to look at alternative mechanisms to increase the efficiency of these resources’ management,” Putin said.


13.06.2013 16:17
Share |
To report an error select text and press Ctrl+Enter
Central Bank Official Rate
1W 1M 1Y
EUR 75.4034 -0.6834 20 apr
USD 60.8583 -0.6956 20 apr
Stock Market Indices
1D 1W 1M 1Y
rtsi 1153.59 -0.08 18:50 19 apr
micex 2230.55 -0.49 18:50 19 apr
Stock Quotes in RUR
1D 1W 1M 1Y
gazp 143.40 -0.93 18:49 19 apr
lkoh 4015.00 -0.37 18:49 19 apr
rosn 337.30 +1.26 18:49 19 apr
sber 213.45 -1.12 18:49 19 apr
MICEX Ruble Trading
1D 1W 1M 1Y
EURTD 75.4200 -0.8250 14:59 19 apr
USDTD 60.8700 -0.5200 17:44 19 apr