SLOVAKIA - The International Monetary Fund (IMF) has called on Slovakia to create a more stable environment for second-pillar pensions, as pension funds in the country returned just 0.6% over the first six months.

In its latest consultation paper on Slovakia, the IMF demanded the creation of “a stable legal and regulatory environment” to match the objectives of second-pillar pension funds.

The debate on whether or not to pull money from the second pillar to boost the state pension system has been recently renewed, threatening the existence of pension funds.

Meanwhile, the six pension funds in the mandatory second pillar reported 0.6% growth for the first half of 2010.

Year-on-year, the return was 1.35%, similar to the full-year result of 2009 of 1.2%.

Managed assets in the mandatory system grew from €2.9bn at year-end 2009 to €3.3bn by the end of June 2009.