By Cyber Era NG Special Correspondent

A new investment by IFC will help further the development of a robust private pension market in Bulgaria, reducing the risk of poverty in the country’s rapidly aging population.

IFC has agreed to acquire up to 10 per cent of the share capital of the Pension Assurance Company Doverie AD (Doverie), owned by Vienna Insurance Group AG Wiener Versicherung Gruppe (VIG) – Bulgaria’s largest pension management company. IFC’s investment will be complemented by advisory services to help Doverie develop a long-term digital strategy and capabilities.

“As part of our VIG 25 strategy programme, we are intensifying our involvement in the pension fund business, where we see continued great potential for growth,” said  member of the VIG Managing Board and country manager for Bulgaria, Peter Höfinger. “With IFC’s global expertise in this area, we can jointly continue to help strengthen private pension provision in Bulgaria.” 

Countries around the world are being impacted by aging populations and outward migration. Combined with stressed government finances, that has reduced financial support for the elderly and led to increased poverty. With the third-oldest population in Europe, Bulgaria is projected to move from having more than three working-age people for every person aged over 65 years to less than two by 2060. Private pension funds can help address these challenges.

“Our investment in Doverie aims to support the development of the pension system and improve access to social protection services in Bulgaria,” said  IFC’s Regional Head of Industry for Financial Institutions Group, Vittorio Di Bello “Strengthening institutions for sustainable growth is a key pillar of our programme in the country to tackle poverty.”