EFKA plans to cash in its bonds

The Single Social Security Entity (EFKA) has decided to break into its investments in order to meet its increased obligations for auxiliary pensions and retroactive payments, due to a drop in revenues that has emerged partly because of the pandemic.

EFKA’s management is set to revise the budget of the single auxiliary pension fund (ETEAEP) – which joined e-EFKA with the latest reform in February – and is preparing to liquidate bonds worth 286 million euros out of the sum of €1.4 billion it owns in the common fund of the social security corporations managed by the Bank of Greece.

The liquidation of almost 20% of ETEAEP’s fortune comes as no surprise. The definitive decision was made yesterday at a meeting of the entity’s board, but that intention had already been publicized by Labor and Social Security Minister Yiannis Vroutsis in Parliament.

On July 2 the increased auxiliary pensions will be paid out for a second month, followed a week later by the retroactive payments due.