Work underway on temporary financial instrument to preserve, protect pension savings from inflationary influences – Uliutin

Minister of Social Policy, Family and Unity Denys Uliutin stated that today work is underway with international partners on a temporary financial instrument to preserve and protect pension savings from inflationary influences.

"The issue of the funded pension system is primarily a question of preserving the resource. It is not even a question of the possibility or impossibility of implementation during a full-scale invasion or during the martial law regime. The question is precisely in the financial instrument that we will offer as a state, so that anyone who invests in the funded system is sure that after a certain period of time he will have these savings, he will be able to preserve them. It is precisely the trust in such an instrument that is important," said Uliutin during the presentation of the Government's Action Program on Monday, answering the question of whether it is possible to introduce a funded pension system before the end of the war.

He added that while the internal financial market is still being built in Ukraine, it is very difficult to find such an instrument within the country.

The minister recalled that a mechanism for domestic government loan bonds was being worked out for these purposes.

"But my personal view is that this is not a completely working situation. When we take part of the resources from the public sector, public finances, and invest them in domestic government bonds through any pension savings fund, we create a deferred problem," Uliutin said.

In this regard, he noted that work is currently underway, in particular with international partners, to invent a "temporary financial crutch," a financial instrument, so that pension savings are preserved and protected from the impact of inflation.