YEREVAN, January 24. / ARKA /. Armenia’s Central Bank was quick to respond to today’s decision of the Constitutional Court to suspend several provisions of the law on funded pension system.
Andranik Grigoryan, a central bank senior official, said the decision would affect the international rating of the country’s financial market.
The highest court of the country has ruled today to suspend Article 76 (providing for penalties for the failure or delay to make mandatory pension payments) and the third paragraph of Article 86 (according to which workers must choose a pension fund and a manager). The hearing of the case will end March 28, 2014.
"We believe that the (pension) reform will continue, but if for some reason it will not, it will have very negative effects. Particularly, it may adversely affect the credibility and the rating our country in the international market,” he told a news conference.
The constitutionality of eight articles of the law was challenged by three opposition factions of the National Assembly - the Armenian National Congress, the Armenian Revolutionary Federation/Dashnaktsutyun, the Heritage and the Prosperous Armenia Party.
The new pension system requires that all Armenian citizens born after 1973 pay social security taxes equivalent to 5 percent of their monthly wages. That money has to be deposited with private pension funds licensed by the government late last December. -0-