Where to invest? asks Makis

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Finance Minister Makis Keravnos dismissed trade union claims that the government’s decision to invest the bulk of the Social Insurance funds in state bonds is giving a low return, thus threatening the future stability of the fund.

“It’s false to say that the government has borrowed CYP 2.5 bln from the Social Insurance Fund. The true situation is that the Fund has invested CYP 2.5 bln in state bonds offering a better yield,” said Keravnos without elaborating when such a decision had been taken.

“And I ask our social partners, where would they invest if the government handed back the CYP 2.5 bln?”

Needless to say, the Finance Minister forgot that Cyprus has a stock exchange with more than 40 companies offering a decent return in the form of dividends. Instead, he scorned the Fund Managers for placing CYP 32 mln in bank deposits and losing track of the funds, which subsequently were discovered by the government.

Keravnos also failed to tell the public how the “wizards” employed at the Finance Ministry plan to increase the return of the fund to meet its rising obligations.