Fiscal council suggests investing social insurance fund to address chronic problem

The state could benefit from investing its social insurance fund as part of an effort to tackle the “chronic problem” surrounding its operations, chairman of Cyprus’ fiscal council Michalis Persianis said on Friday.

Persianis was speaking a day after the council published a report detailing the “internal over-lending” of state funds from the social insurance fund.

The government loan from the social insurance fund currently amounts to €10 billion and although €157 million was paid into it in July, it is high time to address the matter, he said.

According to the report, the central government has been recording deficits since February until the end of the first six months of the year, financed through the social insurance fund.

The chairman said with the fund having high revenues in relation to its expenses, how the money is utilised is something which much be addressed.

With investments, this could offer long-term benefits for the country but instead are operational expenses of the state.