he will take advantage of the davos forum to meet with executives from both investment funds. It will ask them to buy debt to guarantee the payment of the next extras banks are offering to reduce the mortgage payment in exchange for South Korea Phone Number List renouncing judicial proceedings due to floor clauses luis de guindos during the press conference after the council of ministers. Luis de guindos during the press conference after the council of ministers. next july. This will be the moment in which the social security reserve fund will not be able to pay the extra pension payments . For this reason, the government – which is aware of the alarming nature of this situation – is preparing to undertake large issuances of public debt with which to guarantee payment. Pensions are paid, in theory, with social security contributions.
But as they are insufficient due to the drop in collection and the increase in the number of pensioners (since people who are now retiring receive more pension), the government has had to periodically withdraw various amounts from the reserve fund , that is, , known as the “pension piggy bank”. The provisions made to date reached 66,401 million euros in december, leaving only 16,109 million euros in the fund. With these data, the government admits that if nothing is done there is a "high probability" that it will run out in 2017 . The secretary of state for budgets, alberto nadal , stated at the end of december that if the reserve fund were depleted, the treasury would issue debt to finance pensions. This week, the secretary general of financial policy, emma navarro , pointed out that we should not take “for granted” that the reserve fund will be exhausted this year. And he added that, if necessary, the treasury will serve as a guarantee so that pensions can be paid , especially the extra ones for july and december, which are what have forced the government to withdraw money from this fund in recent years.
Later, as reported in ecd , the government has a plan to not empty the piggy bank. This project involves, among other things, paying for pensions through state credits to social security . Ensure goldman sachs and blackrock buy debt given this situation, as el confidencial digital has learned from sources close to economy, minister de guindos will take advantage of his presence at the davos world economic forum, which will be held in the swiss city next week, to meet with senior executives from goldman sachs and blackrock . He has closed meetings with representatives of both investment funds. The objective is to ask them to make an effort in the purchases of spanish public debt, in the next treasury auctions, with which to guarantee the payment of the extras of the more than 9 million pensioners . With these extraordinary debt issues, for which the executive will articulate the necessary legislative actions in the coming months, de guindos intends to provide a definitive solution to the pension hole, which ensures the payment of these payments beyond .