Greece Passes Law To Plunder Pension Funds
Having previously hinted that they might 'dip' into public pensions funds for some short-term cash to payback The IMF, and then confirming that the plan is to repo that cash from pension cash reserves (raising concerns about how they will unwind the repo - i.e. pay it back); the Greek government finally signed the bill today that enables them to plunder the Greek people's pension funds (for their own good).The massive irony of this bill is the bill enables greek deposits to be fully invested in Greek sovereign bonds... which Tsipras and Varoufakis both admitted today is "unsustainable" and "will never be repaid."
- *GREEK GOVT SUBMITS BILL, ALLOWING USE OF PENSION FUND RESERVES
As Bloomberg reports,
Cash reserves of pension funds and other public entities kept in Bank of Greece deposit accounts can be fully invested in Greek sovereign notes, according to amendment to be submitted in parliament, country’s finance ministry says in e-mailed statement.
Cash reserves can be used for repos, reverse repos, buy and sell-back, sell and buy-back transactions
Pension funds, public entities will be able to claim damages from Greek state in case of overdue repayment, partial repayment
Pension funds are not obliged to transfer their reserves to the Bank of Greece, according to finance ministry statement
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We wonder how the increasingly disenfranchised Greeks will react when they find their savings (whatever there is left) are now being directly plundered to fund the nation's transfer payments (via The IMF) to Ukraine.
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Greece remains second only to Ukraine for default risk....
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