ECONOMY

IKA bracing for a deficit of 2.2 bln euros next year

ika-bracing-for-a-deficit-of-2-2-bln-euros-next-year

The new social security “hyper-fund” to result from the merger of all existing entities will be built on unsteady foundations, as its main component will be the Social Security Foundation (IKA), which is expected to show a huge deficit of 2.19 billion euros next year.

The budget of the country’s biggest fund, which is up for approval at Monday’s IKA board meeting, includes a 28.2 percent reduction in state financing that next year will come to 3.18 billion euros, including the pension funds IKA has absorbed. That compares with this year’s financing of 4.28 billion.

IKA is also bracing for a 1.3 percent annual reduction in its revenues from social security contributions in 2016, amounting to 5.08 billion euros. In total, IKA revenues next year are projected to come to 19.21 billion euros, down 5.4 percent from this year’s 20.85 billion euros.