15 November 2003 11:38
PENSION FUND MIGHT INVEST UP TO $1 BLN IN MORTGAGE BONDS IN 2004
"If the mortgage bonds market were in a position to absorb this
money - up to $1 billion - I think we could invest this amount in it
MOSCOW. Nov 14 (Interfax) - The Russian Pension Fund could put up to $1 billion onto the mortgage bonds market in
2004 if the market is ready.
from our [the fund's] reserves," Pension Fund head Mikhail Zurabov told a news conference on Friday.
Zurabov said that the Pension Fund's reserves will stand at about $6 billion in 2004.
He said that legislation allows the Pension Fund to invest its reserves in securities guaranteed by the state,
including mortgage bonds.
Zurabov said that the fund is currently making investments only in government securities. He said that these
securities were undervalued when the fund purchased them, but now they are giving quite high returns. Zurabov said
returns on these investments may prove lower next year, and investments in mortgage bonds will help ensure a higher
yield of pension savings.
Zurabov said a sharp increase in the demand for mortgage bonds may lead to higher housing prices.
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