Putin issues instructions to consider creating mechanism to hedge part of risks for NPFs when investing in stocks

MOSCOW. May 13 (Interfax) - President Vladimir Putin has instructed the government together with the Central Bank of Russia and his administration to develop a tool that would allow non-state pension funds (NPFs) to offload part of the risks when investing clients' assets in stocks.

"We certainly need to ensure the safety of pension funds - that's obvious. And it's clear that these funds, these companies of ours that hold our retirees' money, sometimes struggle to figure things out. I now have a request to the Central Bank, to the government and to the administration: help these funds get a handle on it. First, develop some kind of tool that could at least, let's say, offer some advice. And second - and this is the most important part, though of course it's difficult, and now [Finance Minister] Anton Germanovich [Siluanov] will get nervous - but still, support them, take on part of the risk. That's what matters," Putin said at a meeting with members of Business Russia.

"Of course, I understand that especially under today's conditions, it's difficult to take on an additional fiscal burden, but if we sit down together, such mechanisms could definitely be invented. Taking on part of the risk means offering some kind of guarantees. We need to think this through together," he said.