Return of funds’ money proposed
The Finance Ministry yesterday submitted to Parliament an amendment that paves the way for the payment of 3 million euros to four pension funds that purchased parts of an overpriced government bond. Last week, the funds accepted an offer by investment bank JP Morgan to buy back the 280-million-euro bond after the government promised to compensate them for interest they would have earned had they placed the money in a central bank deposit instead. «The extraordinary payment to pension funds from the state budget is proposed for reasons of overriding public interest,» the Finance Ministry said. The 3.06 million euros covers the interest the funds would otherwise have earned during the period they held the bond, from February to June 15. The Civil Servants’ Auxiliary Pension Fund (TEADY) will receive the largest amount (1.09 million euros), with the next largest chunk (876,503 euros) being paid to the Social Insurance Workers’ Auxiliary Pension Fund (TEAPOKA). The remaining amount will be split between the Newspaper Sellers’ Pension Fund (TSEYP) and the Pharmaceutical Workers’ Auxiliary Pension Fund (TEAYFE). Opposition parties criticized the government for burdening taxpayers with the interest payment rather than properly investigating the scandal. «Instead of returning the stolen money and finding out who is responsible, the government is asking taxpayers to pay for the kickbacks,» said PASOK MPs Vasso Papandreou and Maria Damanaki in a joint statement.
