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GreekReporter.comGreek NewsEconomyInsurance Funds €400 Million Short in 3 Months

Insurance Funds €400 Million Short in 3 Months

50-euro notesInsurance funds are in danger of suffocation, as in the last three months of 2014 there was a deficit of 400 million euros.
From October onwards, there is a recorded lag of 16- 17% in expected revenue, thus creating a gap of about 400 million euros in just one quarter.
The monthly shortfall of insurance funds is around 130 million euros as unemployment causes a drop in contributions. It is estimated that this will continue at least through February, and it is expected that the situation will not improve, regardless of who will be in government in the next months.
An unnamed source from an insurance fund told iefimerida.gr that “unless there is a drastic change, there will be a serious cash flow problem after February.”
The 2015 state budget foresees a 741 million euro deficit in insurance funds. The 400 million added in the last three months of 2014 adds up to a deficit over 1.1 billion euros. However, 300 million euros from the 2015 budget reserve will be used to meet the current needs of insurance funds.

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