ECONOMY

Funds facing 1.4-bln shortage

The social security system will need hundreds of millions of euros by the end of the year, as the risk of nonpayment of pensions is greater than ever, fund employees and trade professionals warned on Tuesday.

The Panhellenic Federation of Social Security Fund (IKA) Employee Unions told the caretaker government and the political parties in a letter that ?the normal payment of pensions in the coming months is becoming problematic? unless an extra 1.403 billion euros is secured by the end of 2012.

IKA revenues have dropped by more than 30 percent in the year?s first four months compared to the same period in 2011, the federation suggested.

The National Confederation of Greek Commerce (ESEE) warned that ?the social security fund of traders and of the self-employed, OAEE, is crumbling, as its revenues have been dramatically reduced.? The fund?s budget has not been approved by its governing board and all difficult decisions have been postponed until after the June 17 general election.