Allocation of 33.2 Billion EGP for Insurance Funds in current fiscal year budget with an increase of 13.7 percent than the allocated in 2013/2014

Minister of Finance, Hany Kadry Dimian, issued two bonds for both Public and Private Social Insurance Funds and government staff with an interest rate of 9 percent after taxes, and with total value EGP 14.2 Billion, representing the third tranche value of the unrecorded indebtedness settlement agreement between Public Treasury and Social Insurance.

The Minister declared that the aggregate bonds issued after the revolution of January, 25^th  2011 till now for insurance reached 42.6 Billion EGP, for which Public Treasury incurred interest rate of 9 percent paid monthly,  providing both funds the  necessary financial liquidity in order to fulfil their commitments to pensioners and  beneficiaries.

He pointed out that the Ministry of Finance will issue additional two bonds for both Social Insurance Funds next January, 2015 , with aggregate value 6.5 Billion EGP according to insurance money indebtedness settlement agreement concluded during the last two years to increase it than the first settlement agreement which identified indebtedness by 142 Billion EGP.

He said that in order to avoid such variations in the future, it has been agreed from the current fiscal year to include the total outstanding amounts of Social Insurance Funds with public treasury in general budget, as the amount of 33.2 Billion EGP. is allocated for both Social Insurance Funds, an  increase of 13.7 percent more than the last fiscal year.

As well as, the interests to be paid for both funds during fiscal year 2014/2015, valued at 20.4 Billion EGP.

The Minister affirmed the commitment of the Ministry of Finance to guarantee social insurance money either invested in government debt instruments or invested by National Organization for Social Insurance. The constitution clearly provides that the state guarantees insurance money, and the commitment of Public Treasury to pay any deficit. The Ministry of Finance is keen to accurately implement all the agreements concluded with the Ministry of Social Insurance to settle indebtedness of Public Treasury and disengagement of financial entanglements represented in the Ministry of Finance, Social Insurance Funds and the National Investment Bank.