Bonds will help government offload billions in IKA debt

The government intends to meet its obligations to pension fund IKA, the country’s largest, by issuing bonds, it said yesterday. The amount owed to the pension fund totals 4.6 billion euros and will be paid by Greek state bonds in five equal installments, with the first due in 2011, the Economy and Finance Ministry said in a statement issued yesterday. The plan may help to pave the way for further reforms in the social security system. Worker and employer groups had called on the government to settle its debts with pension funds before holding talks on further changes to the social security system.