EFKA taps cash reserves as flow drops

The flow of Single Social Security Entity (EFKA) revenues appears to be slowing, with the cash deficit of the social security giant coming to 450-500 million euros in the first four months of the year. Experts anticipate that if this trend continues until the end of the year, the EFKA shortfall could reach up to €2 billion.

At the same time outstanding pension applications remain high, with 150,000 pending main pension issues, while applications for auxiliary pensions are increasing considerably. It has also been observed that the entity is bleeding staff, with sources speaking of an exodus of experienced employees serving in key posts.

The situation has alarmed the new EFKA director, Panagiotis Doufexis, who must now make some crucial decisions.

The blow from the coronavirus pandemic to local entrepreneurship has also hurt EFKA revenues, especially regarding the inflow from debt arrangements, with the entity’s cash reserves still keeping it afloat. At end-2020 the sum of EFKA’s cash reserves came to €2.98 billion, but at end-April that figure had dropped to €2.46 billion, as EFKA had to take out some €520 million.