YEREVAN. – Armenian private pension funds will be managed by French “Amundi” and German “Talanx” companies.

Armenian Finance Minister presented the details concerning mandatory accumulated pension system during the Monday press conference.  

“The mandatory funded pension system will come into effect on January 1, 2014. The operators that have expressed a desire to work in Armenia, have a 100-year experience in managing systems all over the globe. Their portfolios are ten times higher than Armenia’s GDP,” Davit Sargsyan said.

Deputy chairman of the Central Bank of Armenia Nerses Yeritsyan noted that originally negotiations were held with representatives of more than 30 funds. In 2013, it was decided to discuss the practical steps with the companies that have already run similar funds in Eastern Europe.

“In May, bids of 5-7 companies were reviewed. As a result of negotiations, we managed to reduce the fees that they demanded for financial services. In late October, we signed memorandums with the two companies. Now, we are completing the paperwork,” Yeritsyan told reporters.

“Amundi” is a subsidiary of French banks Credit Agricole and Societe Generale with both being among the ten largest banks in the EU. “Talanx Group” is founded by the associations of mandatory insurance of German steel industry companies.