PRIVREDNA BANKA ZAGREB, CROATIA OSIGURANJE TO JOINTLY MANAGE PENSION INSURANCE FUNDS

ZAGREB, May 4 (Hina) - The Privredna Banka Zagreb (PBZ) and the insurance company Croatia Osiguranje on Tuesday signed a letter of understanding on the joint establishment of societies for managing obligatory and voluntary pension saving funds and on the establishment of a pension insurance company. The document was signed by the president of the PBZ management, Bozo Prka, and Croatia Osiguranje general director Suad Rizvanbegovic. After the Croatian National Sabor has voted on the law on the pension system reform, the two financial institutions will immediately sign a contract with a detailed description of all relevant characteristics of their cooperation, mutual rights and obligations and the legal organisation of pension societies they will establish. "The reform of the pension system is one of the most important economic projects in our country. It is expected to solve the complex problem of financing pensions, and make major changes in the overall system of financing in Croatia, as well as to contribute to the economic development of the country and revive Croatian financial markets, primarily the domestic capital market", said Rizvanbegovic. The signatories to the letter of understanding added that, if it proved necessary, a foreign investor and Croatia Lloyd would be included in the project as re-insurance companies. (hina) jn rml