Social Insurance assets up at CYP 3.2 bln

The Cyprus Social Insurance Fund reported that its total assets as at end of June 2007 increased by CYP 107.75 mln or EUR 184 mln to CYP 3.2 bln (EUR 5.5 bln) compared to CYP 3.09 bln end of December 2006 for a 3.5% return.

SIF Director Theophanis Tryphonos told the House that the bulk of the CYP 3.2 bln in assets are held and on deposit with the Central Bank of Cyprus, while only CYP 32 mln are held with commercial banks at the Lombard rate of 4.5%. A number of banks including Bank of Cyprus, Hellenic Bank and Universal Bank lost the SIF account as they refused to pay the higher rate at a time when liquidity conditions in local currency are excessive. Marfin Popular Bank is a newcomer for having received a deposit of CYP 5 mln from the SIF.