Head of the State Treasury Service Tetiana Slyuz believes that the Pension Fund can restructure its debt to the State Treasury Service of Ukraine, which amounted to UAH 48 billion as of August 1.
”The first and foremost way to repay the debt can be through its restructuring for several years, with determination of real repayment sources. Currently, the Treasury Service, the Ministry of Finance, the Ministry of Social Policy and the Pension Fund are working on the resolution of this issue within a legislative framework,” she stated in an interview to the Ukrainian government`s Uriadovy Kurier newspaper.
Slyuz clarified that loans provided to the Pension Fund from a treasury single account can be a temporary source to cover the fund`s deficit.
”During 2007-2015, the Pension Fund received loans to the tune of UAH 322.9 billion from the treasury single account, of which only UAH 274.9 billion, or 85.1%, has been repaid,” Slyuz noted.
It has been reported that the Pension Fund`s debts under loans to the State Treasury Service have been growing each year since 2007. This year, the fund has not attracted such loans.
”This year the fund has repaid UAH 2.4 billion under loans of the past years. As of August 1, 2016, the Pension Fund`s total debt under loans amounted to UAH 48 billion,” Slyuz declared.
As UNIAN reported earlier, the Cabinet of Ministers of Ukraine on March 10 approved the Pension Fund budget for 2016 with revenues projected at UAH 257 billion and own revenues at UAH 110 billion. The state budget subsidies are estimated at UAH 144 billion. It is planned that the subsidies will cover the Pension Fund`s deficit to the tune of UAH 81.3 billion, which has mainly resulted from lower payments under the single social security tax.
International Monetary Fund, Ukraine`s key creditor, expects that the government will develop a plan to eliminate the Pension Fund`s deficit, with pension reform being one of its steps.