Government proposes to create private commercial pension funds in Kyrgyzstan

It is proposed to create private commercial pension funds in Kyrgyzstan. The Government submitted the draft amendments to the law on accumulated pension funds to the Parliament.
As Chairman of the State Service for Regulation and Supervision over the Financial Market Sanzhar Mukanbetov stressed at the meeting of the Committee on Social Issues, Education, Science, Culture and Health of the Parliament, there is only one non-state pension fund in Kyrgyzstan as of today.
"But it works as a non-profit organization and has to hire a management company, while such funds are commercial all over the world," he noted.
According to him, the bill has been developed for the development of the market of private pension funds, creation of new organizations.
About 17 billion soms have been accumulated on the accounts of the State Pension Fund. They are managed by the Social Fund. We propose to open a window for creation of private pension funds.
Sanzhar Mukanbetov
Sanzhar Mukanbetov added that in order to reduce the risk of a possible bankruptcy of funds, the option of parallel insurance is being considered. State Financial Inspectorate will constantly monitor these funds.
The committee approved the bill in the first reading.