Cyprus Social Insurance funds stuck with government

The more than EUR 6 bln reserves of the Cyprus Social Insurance Fund will continue to be held by the government in the form of low interest rate loans rather than invested in higher yielding bonds, shares and other financial instruments.
Finance Minister Charilaos Stavrakis said according to a blueprint sent to the social partners (unions, employers) for discussion, the Finance Ministry will continue to manage the Social Insurance Fund money, placing the bulk of it in Cyprus government bonds, and some money in bonds issued by other eurozone countries and a tiny percentage in the form of deposits with Cyprus banks that have solid ratings.