REFORMA SYSTEMU EMERYTALNEGO NA WĘGRZECH I JEJ ZNACZENIE DLA GIEŁDY PAPIERÓW WARTOŚCIOWYCH W BUDAPESZCIE
THE REFORM OF THE PENSION SYSTEM IN HUNGARY AND ITS IMPORTANCE FOR THE BUDAPEST STOCK EXCHANGE

Summary/Abstract: The aim of this paper is to evaluate the impact of changes introduced in 2010 in the Hungarian pension system on the Budapest Stock Exchange operation. In practice, these changes resulted in the nationalization of private pension funds that were created in 1998 under reforms carried out in the PAYG system. The global financial and economic crisis of the early XXI century has affected not only the financial markets but also exposed the weaknesses of multilevel (multipillar) pension schemes and highlighted the problems of financing the transition period in which it is necessary to grant the PAYG system due to the fact that part of the pension contribution is transferred to the pension fund. Hungarian government’s decision to transfer the contribution from the funds to the first pillar and the introduction of choice about participation in funds was the most extreme option – in other countries it was decided to reduce or suspend contributions transferred to the funds. Taking into consideration the nature of pension funds (accumulation and investment retirement savings) and value of assets managed by funds, liquidation of these entities did not remain indifferent to the capital market, including the stock exchange. This article is based on an analysis of the literature and statistical data on the Hungarian pension system. Basic characteristics of the Budapest Stock Exchange were obtained from the exchange website as well as the statistics of the World Federation of Exchanges.

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