Pension Fund on transfer of its resources to Vneshekonombank

A number of representatives of the government's social block in the Russian Pension Fund do not agree with the idea that Vneshekonombank should become the state managing company for trust operations with citizens' pension savings. As a source close to the Pension Fund reported to RBC, there is a threat that in this event, pension savings could be used for repaying Russia's foreign debt.

According to expert estimates, if corresponding functions are transferred to Vneshekonombank, annual revenues from pension savings will amount to $5m to $8m. At the same time, Vneshekonombank as the government's agent for servicing its foreign debt, transfers billions dollars for this purpose yearly. In the opinion of the source, even after peak payments on the foreign debt in 2003, the debt burden "will not be decline significantly", as Russia will face considerable debt settlements in 2005 and 2008.

RBC's interviewee pointed out that the Russian Finance Ministry could use pension savings, which would not be used for paying pensions by that time, for repaying the foreign debt. The source said that there was a threat that there could be "a zero variant", when in 10 to 15 years the government would have not foreign debts, while Russian citizens would lose their pension savings.

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