The Council of Ministers approved a credit of 13,830 million this Friday that covers the gap between income and expenses of Social Security. With this money, the Ministry of Labor plans to pay the extra payments for summer and Christmas. For the first disbursement they will use 7.5 billion; for the second, 6,330 million, according to a statement from the department headed by Magdalena Valerio.
Although they have been approved in a Friday full of decree law, the 13,830 million of this credit are consigned in the budgets of 2018. In principle, that loan was going to be bigger, but finally it was reduced after the pacts of the PP with Citizens and PNV to get the accounts forward.
This year, in principle, the credit was also going to be higher, 15,150 million, to which we had to add a transfer of 850 million for the financial sustainability of the system. When the public accounts of 2019 were rejected, the Government has to follow the path marked in the 2018 budgets.
"The granting of the loan made today ensures timely payment of pensions and allows Social Security to plan well in advance the provision of resources necessary to meet these extraordinary outlays," says Social Security in a statement issued after the Board of Directors. Ministers
The growing deficit of Social Security since 2011 and the exhaustion of the Social Security Reserve Fund, in which some 5 billion remain, led the previous Executive to give credits to the pension system to meet its payment.
The Pact of Toledo provided for the maintenance of this policy for a few more years. In the parliamentary pre-agreement that derailed at the end of February, it was expected that the Treasury would soon begin to make transfers, not loans, to the Social Security to close the deficit, which now stands at more than 18,000 million. The deadline to close the hole was 2025.