The seven mandatory private pension fund managers (Pillar II) recorded RON 147.5 million (EUR 31 mln) revenues in the first half of the year, 37.5% lower compared to the same period of last year, Profit.ro reported.

Their revenues dropped as an effect of the emergency ordinance (OUG) 114/2018, which reduced, among others, the management fees.

The aggregate result of the fund managers thus dropped to RON 33.9 mln (EUR 7.2 mln) losses, compared with RON 54.9 mln (EUR 11.7 mln) profit in the same period last year.

Under OUG 114, as approved at the end of 2018, the pension funds managers were allowed to charge lower management fees and were required to increase their capital.

Subsequently, by OUG 38/2019, the Government lowered the capital requirements after the fund managers stated that there were "significant uncertainties" regarding the continuation of their activity.

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editor@romania-insider.com