Eight Croatian Investment Funds To Set Up Intervention Pool – Watchdog

The pool will be in the form of an open-end investment find, into which the participants will contribute money in proportion to their market shares, HANFA said in a statement after a meeting with the management of the eight funds. They include mandatory pension funds AZ, Erste Plavi, PBZ – CO and Raiffeisen, and open-end fund managers Erste Invest , PBZ Invest, Raiffeisen Invest, and ZB Invest.

"An initial payment of 150 million kuna ($28.4 million/21 million euro) will be made after the fund is set up and it will be increased if necessary, while the payments will be made for a period of five years," the statement added.

The prospectus of the intevention pool will be submitted for approval to HANFA on October 14.

The participants will use money from the intervention pool only to  pay their members, after which the fund will be closed, the statement said. HANFA’s spokeswoman Ozana Basic was not immediately available to comment.

The recent global financial crisis has hit the Croatian market by slashing the prices of the assets held by investment funds.

(1 euro = 7.1482 Croatian kuna)