Most Pension Pillar II administrators consider withdrawing from Romania, BNR chief economist says

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The majority of the 7 administration companies of Pension Pillar II consider withdrawing from Romania, central bank’s Chief Economist Valentin Lazea said on Monday, at the Romanian Stock Market Summit.

“As far as I understand from the talks with the Association of Private Administered Pensions, the majority of the 7 administration companies of Pillar II consider withdrawing from Romania, given that the conditions become overly onerous. It is a huge financial effort for non-existing profit. No less than 7.5 million people will be affected,” Lazea said, quoted by

The consequences of Emergency ordinance 114.2018 could reverse the development of the stock exchange heading to the level of emerging market, with investments, pensions and Government financing affected, he added.

“The National Bank is interested in the Stock Exchange development for several reasons. The first one is related to the financial stability, the second to macro-economic stability and the third one to encourage the alternative funding method, another one besides the credit. (…) Unfortunately, the effects of GEO 114 could reverse the road reaching the emerging market statute,” Valentin Lazea said.

The BNR Chief Economist argues that three categories of interests are affected, namely: investments on the stock exchange, decent pensions for 7 million participants and the Government funding by the pensions funds. The documents regarding Romania’s accession to the euro area point to the important role played by Pension Pillar II in all these areas.

“GEO 114 demands the administrations of Pension Pillar II administrators to complete in 2019 capital increases of about EUR 800 million, an amount 11 times larger than the current capital. The amount is two times larger than the sum of all gross commissions collected during the past 11 years,” the BNR official said.


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