Financial services

Legal action taken against Bulgaria by the State General Reserve Fund of Oman is based on ill-founded claims, the country's Finance Minister Vladislav Goranov said on Tuesday.

He asserted Bulgaria was "prepared to fight this battle" and had already hired a team of lawyers.

Greek fiscal targets will not be met unless deep cuts are made to pensions, even those that are lower than 1,000 euros per month.

The State General Reserve Fund of Oman has taken legal action against Bulgaria, seeking to recover the book value of its investment in collapsed Corporate Commercial Bank, Sofia-based 24 Chasa daily reported on Monday.

Reforms to social security funds are sowing the seeds of panic to beneficiaries. The Labor Ministry has yet to provide its conclusions regarding the future for Greek pensioners, but there are a number of issues up in the air. These include:

– Pension rates, the new index to be created and the size of the slashes that are unavoidable

Greek Labor Minister George Katrougalos agreed on the creation of a basic pension worth 390 euros. His plans for the new pension rates are aimed at protecting low pension earners due to the restructuring (ie. cutbacks) of Greek pensions. The recommendations are to be put forth at the ministerial council on Tuesday.

A total of six banks will provide 4.5 billion euros ($5.11 billion) to a consortium involving five Turkish construction companies that will carry out the construction of what is expected to be the third airport in Istanbul with a capacity of 150 million passengers. 

Deputy Minister of Social Security Anastasios Petropoulos  pre-announced an extraordinary contribution of at least 100 euros in order to support the insurance fund, which is on the brink of bankruptcy recording a deficit of 530 million euro.

“If we do not take any measures, we will face Armageddon”, Deputy Minister of Social Security Anastasios Petropoulos warned speaking to MEGA TV channel. But, “we are not going to cut, just like that, the pensions of people,” he clarified.

If you know three pensioners who get benefits worth over 1,000 euros per month, then expect one of them will lose these due to the restructuring of pension system due to the necessity of further belt-tightening. The so-called Committee of Wise Men on Thursday delivered a 30-page report outlining reforms needed in the pension system.

Labour Minister Giorgos Katrougalos announced that the final bill will be submitted to the Parliament in November leaving open the possibility of imposing taxes on great wealth and new contributions to business activities to raise money for the insurance funds.