The EDB and the Social Fund of the Kyrgyz Republic sign a cooperation agreement on the transfer of EAEU employees’ pensions
Bishkek, 21 January 2022. The Eurasian Development Bank (EDB) and the Social Fund under the Cabinet of Ministers of the Kyrgyz Republic (“Social Fund”) signed a cooperation agreement to ensure pension payments to individuals working in the Eurasian Economic Union (EAEU) states.
The document was signed by Nikolai Podguzov, Chairman of the EDB Management Board, and Baktiar Aliev, Chairman of the Social Fund.
It has been agreed that the Social Fund will transfer pensions of individuals working in the EAEU member states in national currencies using the EDB’s settlement system.
The Agreement on Pension Coverage of Employees in the EAEU Member States (“Agreement”) took effect on 1 January 2021. It stipulates that since 2022 settlements between EAEU member countries will be made in the member countries’ national currencies between the relevant authorities in charge of pension coverage. The said settlements will be effected through an international financial institution whose founders are member states of the Union, with a permanent seat in one of the member states. The EDB is the international financial institution in charge of these settlements.
“As a key development institution in Eurasia guided by ESG principles, the EDB stands ready to support the achievement of the Sustainable Development Goals by its member countries. Of course, the agreement signed today is first and foremost important for the millions of people working in EAEU countries. Making pension settlements using the new EAEU mechanism will promote the economic development of the member states and integration. We believe that the Agreement will facilitate wider use of the EDB’s settlement infrastructure as well as of national currencies in cross-border settlements,” said Nikolai Podguzov, Chairman of the EDB Management Board.
Additional Information:
The Eurasian Development Bank (EDB) is an international financial institution promoting integration and development in its member countries. For 15 years, the Bank has worked to strengthen and broaden economic ties and foster comprehensive development in its member countries – Armenia, Belarus, Kazakhstan, the Kyrgyz Republic, Russia, and Tajikistan. The EDB's charter capital totals US $7 billion. The EDB’s portfolio mainly consists of projects with an integration effect in the areas of transport infrastructure, digitalisation, green energy, agriculture, industry, and mechanical engineering. The Bank adheres to the UN Sustainable Development Goals and ESG principles in its operations.
The EDB is a member of the national payment systems of Armenia, Belarus, Kazakhstan, Kyrgyzstan, and Russia and has correspondent accounts with the central banks of all member countries, direct access to foreign exchange transactions on local exchanges, and acts as a market maker for national currency pairs. In 2020, the Bank was certified to the international standard ISO 27001:2013 to confirm that its information security management system extends to settlement services.
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