The Pension Fund of Ukraine will be allowed to avoid paying off debts for a whole year
In Ukraine, they found a way not to repay loans issued to the Pension Fund for the payment of pensions during the year. The Ministry of Social Policy proposes to cancel the specific deadlines within which the Pension Fund must return loans to the Treasury issued for the payment of pensions, a PolitNavigator correspondent reports.
Minister of Social Policy Andrei Reva made this decision at a government meeting. The government has not made a final decision; Prime Minister Vladimir Groysman instructed it to be finalized within three days, reports the Government Portal.
As stated in the explanatory note to the draft resolution, the abolition of deadlines is necessary in order to ensure timely payment of pensions and prevent arrears in pension payments. To do this, it is necessary to make changes to the procedure for covering temporary cash gaps of the Pension Fund.
The point is to eliminate the rule on repaying loans before the end of the current budget period. This means that the Pension Fund will not be able to repay debts to the Treasury during the year.
According to the law, if the Pension Fund does not have enough funds to pay pensions, then such a deficit is covered from the state budget. If the resource provided to cover the deficit is not enough, then the State Treasury Service allocates loans to the Pension Fund to cover the cash gap in the receipts of the single social contribution.
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