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VNESHEKONOMBANK TO INVEST PENSION FUNDS IN RUSSIAN COMPANIES' STOCKS

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WASHINGTON, April 18 (RIA Novosti) - Vneshekonombank, a state managing company administering pension accruals, plans to invest pension funds in Russian companies' stocks, head of the bank Vladimir Dmitriyev said.

"We have raised the question of the company's participation in trading in Russian securities," the official told the session of the World Bank and the International Monetary Fund in Washington.

The question is about secure top-notch companies, he added.

Vneshekonombank holds 95 billion rubles of pension accruals.

However, these funds can be invested in state-guaranteed government bonds and mortgage notes, and not in the stocks of Russian companies, which make higher profit.

Dmitriyev noted that the pension investment tools determined in the investment declaration are not enough for the bank.

"Sooner or later a question will arise whether to diversify the stock market, which will make it possible to raise the capitalization of Russian companies," he remarked.

Russian Minister of Finance Alexei Kudrin admitted pension investment by Vneshekonombank in corporate securities in the future.

"Private managing companies already can afford this. As for state-run companies, this will be possible in the future," Kudrin was quoted by RIA Novosti as saying.

The pension reform in Russia allowed 55 non-government managing companies to administer pension funds in 2003. They hold the accruals of 2% of Russians, or 1.5-2 billion rubles.

Most Russians did not let any private company manage their pension funds, which is why they were transferred to the state managing company, Vneshekonombank.

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