Pension Fund to invest $316 in mortgage securities in 2003

Investments in mortgage securities will reach about 10bn rubles ($316m) in 2003, Deputy Chairman of the Russian Pension Fund Alexander Chernoivanov announced at a meeting with journalists today. According to Russian law, the Pension Fund may invest only in Eurobonds, government bonds and mortgage securities. The volume of assets from the accumulating part of the Pension Fund to be invested in securities will reach about 40bn rubles (about $1.26bn) in 2003 and about 50bn rubles (about $1.58bn) in 2003.

The Pension Fund's official spoke at the round-table meeting 'The development of mortgage credits in Russia' today and announced that the Pension Fund had signed an agreement with the Agency of mortgage crediting, stipulating for plans to invest assets from the Pension Fund's accumulating and reserve funds in the agency's corporate bonds. According to Chernoivanov, the Russian Pension Fund may invest about 2bn rubles (about $63m) in these bonds in the event the state provides guarantees. In his turn, the agency's director announced they had already sent an application for state guarantees to the Finance Ministry in September. He hopes the ministry will approve the application.