IMF throws its two cents into savings debate

Researchers at the International Monetary Fund (IMF) recently published a 20-page report detailing the urgency and benefits of transforming the Pula Fund into a Sovereign Wealth Fund (SWF) and weighing the various ways government could do this.

Through various scenarios and comparison with best-case SWFs in Norway and Chile, the researchers estimated that maintaining an overall budget surplus of about one percent of Gross Domestic Product over the medium term and channelling this to an SWF, would be sufficient to create a credible insurance buffer against shocks.