Poland may ban OFE investments in foreign bonds - minister
September 16, 2013
Poland is inclined to prohibit private pension funds OFE to invest in Treasury papers of other countries in the frame of OFE reform, deputy Treasury Minister Wojciech Kowalczyk told reporters on Friday.
"It is likely that after changes in OFE, they will not have to possibility of investing into Treasury papers of other countries, it would be illogical as we prohibit them to invest in our papers," Kowalczyk said.
Poland will turn back its 1999 partial privatization of the social security system, sending the portion of the private pension funds (OFE) invested in Treasury bonds (estimated at 51.5% of OFE assets) back to the social security system and making further participation in the system optional. Investment in Treasury papers would be banned.