Second pillar pension funds may help finance highway construction

A key agreement between Prime Minister Robert Fico and private pension fund management companies is in the dealings. Fico appealed to the pension fund management companies on Saturday, February 28, asking them to suggest how they want to help the Slovak economy in the time of economic crisis.
Long-term resources they administer in the pension funds might be invested in Slovakia’s highway construction. They would be able to allocate about €660 million for the highway construction in a relatively short time.
The pension funds could make loans to the state or directly to construction firms. If they lend to the state, about half of the assets of the pension fund management companies would be in state securities.
Fico has not yet given public approval to the idea. He will be meeting with shareholders of the pension fund management companies on the evening of March 3.