The study will be ready based on the timetable set by the International Labour Office and will not consider the strict references set by Cyprus’ international lenders, the Troika (EC, ECB, IMF), in the previous study in 2013.

In statements to CNA, Director of the Social Insurance Services at the Ministry of Labour, Theofanis Tryfonos, explained that the previous study did not take into consideration the interest in the reserve of the Fund nor the reserve itself which amounts to about €7 billion, money which the State owes to the Fund.

The new study, he added, will take into account the same estimations that were used in all previous studies done in the past, before 2013.

Tryphonos said that the new study will take into account the interest from the investments of the Fund’s reserve, the amount of the reserve as well as the amount of the government contribution of 4.3% for the insured persons of the Fund.

According to CNA sources from the International Labour Office, in the past there was a small surplus in the Fund, which increased its reserves, but the past two years turned into a deficit because of the economic crisis, which temporarily reduced the Fund’s income as a result of increased unemployment and the reduced wages while spending continued.

"Now data has changed because revenue began to increase," the same sources told CNA, adding that there will be a long-term study for the Fund’s viability until 2060.

Source: Famagusta Gazette