Erste Pension Fund



Project number:


Business sector:

Insurance, Pension, Mutual Funds

Notice type:


Environmental category:


Approval date:

14 Dec 1999



PSD disclosed:

07 Dec 1999

Project Description

The EBRD will invest in the foundation capital of Erste Mandatory Pension Fund Management Company d.o.o. (EPFMC) for a pillar II open Erste Mandatory Pension Fund (EPF) to be established as a limited liability company in accordance with the Mandatory and Voluntary Pension Funds Act of Croatia. The operation will enable EPFMC to establish and manage a pension fund for mandatory pension insurance based on individually funded savings of insured persons in Croatia.

Transition Impact

Pension reform will have a broad impact on the Croatian economy. Successful reform will depend on the existence of a solid private pension fund management sector, on capital markets that fulfil basic conditions, such as liquidity, depth, diversity of instruments, and on reliable regulation.


There is likely to be a substantial impact on local currency savings, government finances, old age security, interest rates, securities markets, labour market, corporate governance, etc.


The proposed operation would support such reforms by focusing on the strengthening of the institutional basis for their implementation.


Being a fully commercially oriented transaction and benefiting from a strong market visibility, the project is expected to have a significant demonstration effect in other EBRD countries of operations and reinforces the Bank’s commitment to Croatia.

The Client

Erste Mandatory Pension Fund Management Company d.o.o. is a pension fund management company for a pillar II open Erste Mandatory Pension Fund to be established in Croatia.

EBRD Finance

EBRD financing will consist of:

  • an equity investment in EPFMC, representing 25.1 per cent of the company’s capital and voting rights;
  • the purchase of a further 3.59 per cent share in the company by 30 June 2002 to reach a total shareholding of 28.69 per cent; and
  • a further capital increase pro rata to its shareholding in the company to comply with the minimum capital requirement of the Mandatory and Voluntary Pension Funds Act of Croatia.

Project Cost

The aggregate investment is expected to be up to HRK 22 million (EUR 2.9 million). This may be higher, however, as the cost of the overall operation is based on the final number of subscriptions to the Erste Mandatory Pension Fund.

Environmental Impact

The EBRD’s Environmental Guidelines for Passive Investments will apply to this operation.

Technical Cooperation



Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

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