So­cial se­cu­rity funds back to their old tricks

Kathimerini English - - Focus - ROULA SALOUROU

So­cial se­cu­rity funds are en­ter­ing the tough­est pe­riod of the year, re­sort­ing to var­i­ous so­lu­tions used in the past as their grow­ing deficits make it even harder for them to cover pen­sion pay­outs for De­cem­ber 2016 and Jan­uary 2017.

These tricks are as­set liq­ui­da­tions, bor­row­ing from the spe­cial ac­count for the sol­i­dar­ity of gen­er­a­tions (AKAGE), re­quest­ing ad­di­tional fund­ing from the state bud­get, de­lay­ing the pay­ment of dues to third par­ties and sus­pend­ing or slow­ing down new pen­sion is­sues.

OAEE, the fund of self-em­ployed pro­fes­sion­als, faces the big­gest prob­lem, hav­ing spent the last of its an­nual al­lo­ca­tion of funds (834 mil­lion eu­ros) from the state bud­get in late Septem­ber. A min­is­te­rial de­ci­sion for the al­lo­ca­tion of an ad­di­tional 350 mil­lion from AKAGE has al­ready been signed.

The So­cial Se­cu­rity Foun­da­tion (IKA) has used up 83.9 per­cent of its yearly fund­ing of 2.2 bil­lion eu­ros, but will need more by the end of the year, so it will likely ask for ad­di­tional bud­get fi­nanc­ing.

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