The first Vice PM expects privatization of SAPF and issue of 15-year GS by the Ministry of finance

/Kazakhstan today, January 1, 04/ - Grigoriy Marchenko, the first Vice PM expects privatization of State Accumulative Pension Fund in 2004 and issue of 15-years government securities by the Ministry of finance. A former head of the National bank informed about this fact today, on January 7 at press conference held in Almaty. "I believe that State Pension Fund should be privatized at last, and that it should work based on common principles as other funds do in order to guarantee fair competetion", - G. Marchenko said. "The resolution of the issue would take some time, but I believe it will happen in 2004", Marchenko thinks. At the same time, as informed earlier, Alexandr Pavlov who was the first Vice PM, stated that the government of the RK will adopt a decision concerning SAPF's privatization with the participation of international financial institutions in the first quarter of 2004. At present, SAPF's share at pension services market is 25%. As of December of 203 16 APF were functioning in Kazakhstan, including one state-run and two corporate funds. Pension assets increased by 32% relative to the beginning of the year and as of December of the last year reached KZT356 bn. The number of depositors increased by 700 persons to 6.1 mn of people. Moreover, as Marchenko informed, the National bank extended the limits of investing on instruments for pension funds. However, he refused to inform about details, reasoning than they have not bee registered by the Ministry of Justice. "We confirm that there is a lack of instruments at domestic market, yet pension funds did not take opportunities to invest abroad in full. Limit was 30%, whereas only 10% were used in reality", Marchenko noted. In Marchenko's opinion, in current year 15-year GS issue can also be expected. In 2002 the Ministry of finance issued 10-year special treasury bonds MEAKAM. In December the entity financing them decide to call bonds. [2004-01-07]