Spaniards Tap Reserve Funds
Once again, the Spanish government will be required tap its Reserve Fund in order to pay pensions, according to an article published in El Pais by Anabel Diez.
Taboos have been broken on the fate and use of the Reserve Fund for Social Security, i.e. the pension bank. Mariano Rajoy’s government will use the fund when deemed necessary to pay pensions, as it did on two previous occasions in 2012. She will have to resort to the same measure once again this year, as there are more and more retirees and less contributors.
The Spanish pension fund ended the year 2012 with 63.008 million euros in assets after the fund had generated 2,970 million euros in net income.
The government was able, with the help of pension money, to cope with the biggest year-over-year debt increase in the history of Spain.