Lower Earnings Have Been Registered in the Silver Fund

The only source for the Silver fund remains concessions after the revenues from privatization and the budget surplus have stopped. By the end of May, there are a total of BGN 2.9 billion in the fund, according to the data of the Ministry of Finance.

Up to now, the privatization proceeds are BGN 770 000, from fines related to the post-privatization process - BGN 2 million. There are no proceeds from budget surpluses and the reason: by law 25% of the realized state budget surplus has to be transferred to the fund.

The silver fund was created with part of the budget surplus in 2007 with the aim to help the state pension system and to ensure additional sources for pension funding.

A special law was adopted to indicate what sources of revenue will be fed and how it can be managed. The funds’ inflow in the Silver Fund is regulated every year in the budget law and comes mostly from privatization, concession revenues, as well as from potential surpluses in the central government budget. By law, up to 70% of the funds, can be invested in shares in EU member states, up to 30% in third country shares and up to 30% in bonds.

The pension-supporting Silver Fund’s resources remain deposited in the Bulgarian National Bank, although several times the fund's governing council has the idea of choosing managers for more active management.

Petya Petrova

Petya Petrova is a journalist, believer, and traveler.

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