Pension funds' deposits in Bank of Greece could offer higher yield, Govt says

In response to a question tabled in Parliament by Golden Dawn MP Georgios Galeos over the management of Greece’s state-run pension funds, Alternate Finance Minister Dimitris Mardas said funds would be able to manage better their cash reserves by depositing them in the Bank of Greece.

Mardas said one of the amendments voted on Wednesday by parliament allows pension funds to deposit their cash reserves in the Bank of Greece and also to invest them in repos and other securities.

In cases of losses, these investments will carry a full state guarantee, Mardas added, noting however, that the decision to deposit the money or not to the BoG is at the discretion of the funds.

Greek “state guarantees”, of course, meant little during the PSI “haircut” a few years ago when private bond holders took a significant “hit”.