Social insurance coverage debt to be repaid by 2021: Finance ministry

The Ministry of Finance has pledged it will use treasury bonds to repay the common budget’s debt owed to the National Organization for Social Insurance (NOSI), amounting to EGP 162bn between 2011 and 2013.

The agreement came following a Thursday meeting among Minister of Finance Hany Qadry Dimian and Minister of Social Solidarity Ghada Waly.

Pensioners, who fall underneath the authority of NOSI, have stated the government owes them about EGP 600bn, as the National Investment Bank, a state bank managing public investment, had lent this income to governmental agencies “and has not provided pensioners with the interest owed to them”, the Pensioners Solidarity Syndicate stated.

However, in December, the finance ministry denied the cash allotted for pensions and insurance coverage had been used to finance state institutions in this way. The ministry added that insurance coverage debt from 1980 to 2006 never exceeded EGP 69bn.

Dimian noted that the repayment period would conclude by 2021, which he named an “appropriate” time period of time in buy to prevent monetary disturbances or rising the spending budget deficit.

“The very first 2 treasury bonds, with the value of EGP 28.4bn, have already been issued,” Dimian additional.

The minister stressed the significance of sustaining a balance between the bonuses of pensions and social insurance, and fiscal scenario of the country, emphasising the need “not to boost the public debt”.

Meanwhile, Waly announced that her ministry and the NOSI are at present getting ready a new social insurance draft law that would be concluded within 3 months and “issued for communal dialogue prior to submission to the parliament”.

The pairs also discussed setting a minimum pensions’ value, with Waly saying her ministry is studying the probability of applying such a value gradually.

In purchase to finance the increases in pensions, the NOSI will research the choices and submit a proposal to the finance ministry, the statement explained.

In October, the interim government made a decision to boost the pensions of government employees by 15%, powerful considering that January 2014.

Public expenditure on wages and compensations comprised EGP 141bn of the state’s price range in the fiscal yr 2012/2013, representing a 14.8% increase year on 12 months.

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