Greece’s biggest pension fund borrows €360 mln so it can pay June pensions

The Social Security Foundation (IKA), Greece’s largest pension fund, has decided to take short term loans worth €360 million in order to pay June’s pensions to its members, financial site reports.

The decision was made on Monday by IKA’s governing board.

The loan is comprised of €150 million in repos from a private bank, using Greek Treasury bonds that IKA owns as collateral, and the rest from cash reserves of three other funds, including €100 million from the Public Power Corporation (PPC) employees’ insurance fund.