CZECH REPUBLIC - Two Czech pension funds, Zemsky and CSOB Progres are to merge bringing further consolidation in the country's pension market.

The CZK700m (€25m) Zemsky pension fund, which joined the largest Czech banking group CSOB last year, will be merged with the group's second largest fund, the €42m CSOB Progres by year-end according to Czech media reports. Neither fund was available for comment.

In the Prague Daily Monitor, Zemsky chief executive officer, Jaromir Wagner pointed out that nothing will change for the fund's clients after the merger.

The move means a further consolidation in the Czech supplementary pension system, which only consists of third-pillar provision. Of the 44 funds set up since the system started over ten years ago, only nine will have survived by next year.