Privatized GNPF will be renamed

/Kazakhstan today, April 13, 04/ - State Accumulative Pension Fund (GNPF) will be renamed upon possible privatization, Yelena Bakhmutova, deputy head of Agency for regulation and supervision over finmarkets and organizations (AFN), told press conference held today in Almaty. Ms. Bakhmutova explained that only if the government maintains 100% ownership, the fund could be named "governmental" (state). By contrast, once a private person acquires stake in fund, the fund has to be renamed. According to Bolat Zhanishev, AFN Chair, the government should not compete with private pension funds. Moreover, the government acting as main shareholder negatively influences activities of the fund it owns. Mr. Zhamishev is convinced that privatized fund will be as successful as before, because of several reasons including improved professionalism of employees. As informed, ATFBank JSC is likely to become one of the GNPF's new owners. In addition, National bank's head Anvar Saidenov told on April 7 that officials were already in talks with the European Bank for Reconstruction and Development (EBRD) and hoped to encourage the bank to take part in privatization process. Mr. Saidenov stated GNPF needs to be privatized with the help of International financial organizations like the EBRD and IFC. He also noted the government would retain 26% ownership in GNPF. At present GNPF has 25% market share at Kazakhstan pension market. Assets collected from more than 6 million people accounts for KZT360 bn. GNPF competes with 15 accumulative pension funds. [2004-04-13]