Under a government initiative established in 2011, almost all private pension fund savings – nearly HUF 3 trillion or more than 9% of GDP – were transferred into the fund and used to reduce Hungaryʼs state debt. The fundʼs assets fell to practically nil by the end of 2013.
Economy ministry deputy state secretary László Balogh told the committee that the assets taken over from the private pension funds were, in fact, worth 10% less than their HUF 3 tln book value. He explained that part of the assets were real estate and illiquid securities denominated in more than 40 different currencies.
Membership in private pension funds was earlier mandatory for many Hungarians.
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