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Stock Market Boss Thinks Pension Reform Not Far-Reaching Enough

Ljubljana, 25 September (STA) - Andrej Šketa, the boss of Ljubljana Stock Exchange operator Ljubljanska borza, believes that changes to pension legislation are a step in the right direction, but he fears the reform is $not decisive enough$, as the government is forgetting the second and third pension pillars.

"There is a danger that in its desire to centrally manage the pension system, the state will exaggerate in prescribing what belongs in the first pillar and ignore the second and third pillars, preventing people from gradually starting to think long-term about their pensions," Šketa told Tuesday's edition of the daily Dnevnik.

The stock market operator has for years been pushing for individual pension accounts as part of the third pillar. Šketa argues this would benefit banks by extending the maturity of deposits, and ultimately companies, as a part of the savings would be invested in stock.

Within a couple of years the Slovenian capital market could expect tangible benefits. "The current inflows in the second and third pillars are about EUR 20m per month; if half of this was to be channelled to financing businesses, it would mean EUR 100m per year. This approach would also motivate foreign investors," according to Šketa.

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