THE ROLE OF ARMENIAN PENSION FUNDS IN THE DEVELOPMENT OF THE CAPITAL MARKET / ՀՀ ԿԵՆՍԱԹՈՇԱԿԱՅԻՆ ՖՈՆԴԵՐԻ ԴԵՐԸ ԿԱՊԻՏԱԼԻ ՇՈՒԿԱՅԻ ԶԱՐԳԱՑՄԱՆ ԳՈՐԾՈՒՄ

It is no coincidence that active pension funds play a significant role in the financial systems and, more broadly, in the economies of many developed countries. In this context, the Republic of Armenia is no exception. Research indicates that the mandatory pension system, implemented in Armenia for over a decade, along with the pension funds formed as a result, plays a considerable role in the country’s financial system and overall economy. Over the years, the financial resources generated within Armenia’s two operational pension funds have primarily addressed the state's short-term liquidity needs. This is largely due to the fact that a significant portion of the funds' assets is invested in Armenian government bonds, enabling the state to increase the share of domestic public debt within the overall public debt portfolio. This approach is more favorable, as it ensures that financial resources remain within the Armenian economy. Additionally, depending on the risk profile of each fund, a portion of the assets is also invested in equity securities, thereby contributing to the development of the private sector. Despite the fact that the mandatory pension system entails numerous risks, at present, the proper and diversified management of the financial resources accumulated in the pension funds can transform them into real investments, aimed at fostering economic development and promoting sustainable growth.