The Wall Street Journal. Spain Drains Fund Backing Pensions 03.01.2012

Spain Drains Fund Backing Pensions

By DAVID ROMÁN

MADRID—Spain has been quietly tapping the country’s richest piggy bank, the Social Security Reserve Fund, as a buyer of last resort for Spanish government bonds, raising questions about the fund’s role as guarantor of future pension payouts.

Now the scarcely noticed borrowing spree, carried out amid a prolonged economic crisis, is about to end, because there is little left to take. At least 90% of the €65 billion ($85.7 billion) fund has been invested in increasingly risky Spanish debt, according to official figures, and the government has begun withdrawing cash for emergency payments.

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Posted on January 9, 2013, in BY COUNTRY, BY DATE, BY LANGUAGE, BY SOURCE, Catalan, English, January 2013, United States of America, Wall Street Journal. Bookmark the permalink. Leave a comment.

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