ECONOMY

Amendment to ease use of cash reserves

The government will submit an amendment to Parliament to allow itself to utilize the cash reserves of state-controlled entities such as social security funds, while giving the managers of those entities its guarantee that those reserves will not lose their value.

Kathimerini understands that the amendment will be tabled in a draft law regarding the reinstatement of former state broadcaster ERT, so that the cash reserves can start being transferred into repos during the last week of March.

The amendment will broaden the application of the regulation applied to the reserves of the Greek Payment Authority of Common Agricultural Policy Aid Schemes (OPEKEPE). The government hopes that social security fund managers will be convinced by ministries to hand their cash to the Bank of Greece in exchange for repos, as their reserves – currently held in commercial banks or foreign lenders – will be fully guaranteed by the state.