The Reserve Fund, the call piggy bank of pensions, not only lose resources with the money that is taken out every year to pay the extras of the pensions. It is also losing it, "since May 2017", due to the negative profitability it has both in its investments and in the current account that it has open in the Bank of Spain. "The situation, from the point of view of the Reserve Fund, is anything but flattering", concluded the Secretary of State for Social Security, Octavio Granado, in his initial speech today, on the occasion of a meeting of the Pact of Toledo.
Granado says so because for more than a year the return on investments has been negative. In fact, at this moment the piggy bank of pensions it has resources of 8,061.56 million, below the last known figure: 8,095.31 million, at the end of 2017.
Granado has ensured that, since the middle of last year, the fund "has placed all its values in negative profitability." This, explained the Secretary of State, is a consequence of decisions of the previous Government.
The counterpart of Draghi's plan
Granado, in a short speech in which he has made clear that exposed the management of the previous team of the PP, has justified these losses by the monetary policy of the European Central Bank: "It is a price paid by the public administrations for cheaper money." With this, he referred to the measures taken by the head of the European banking regulator, Mario Draghi, to stimulate the economy and prices.
The negative returns of the money saved in the piggy bank of pensions would come from interest that would be between -0.1%, short-term public debt bonds, and -0.4% of the current account held by the Fund in the Bank of Spain.