The competent authorities are in the process of recovering benefits given during the COVID-19 period through special plans, for which it has been determined that these procedures need to be activated, said Minister of Labour and Social Insurance Yiannis Panayiotou, speaking for the first time in his ministerial capacity before the Parliamentary Public Expenditure Control Committee.

At the same time, the Labour Minister said that the money borrowed (intra-governmental borrowing) by the Republic of Cyprus from the Social Insurance Fund (SIF) amounts to about €10.5 billion with an interest rate which reached 4.2% in 2023.

"This policy of intra-governmental borrowing has been in place since 1960, at times with different vehicles or in different ways," Panayiotou stressed, announcing that in the coming weeks the Council of Ministers will take relevant decisions on the next steps of the pension reform through the appointment of an inter-ministerial committee with specific terms of reference.

According to data from the Ministry of Labour, the total recoverable amount given in the COVID-19 period for employee support amounted to €11,979,479, of which €4,313,358 has been received, while objections were accepted for an amount of €3,774,082.

In addition, an amount of €517,983 was counterbalanced and an amount of €3,267,925 is pending for recovery, which has been forwarded by the Ministry of Labour to the Law Office for further action regarding cases that did not respond to recovery letters.

With regard to the amount that has been invested over time, from the 1960s to the present day, by the SIF in the public sector through so-called intra-governmental lending, Panayiotou said that this amount "is taken into account in the actuarial studies so that the viability of the Fund can be properly assessed" and added that other investments by the SIF would probably "have already put the Fund at risk."

"This practice cannot continue," he said, announcing that "in the coming weeks the Council of Ministers will take relevant decisions on the next steps of the pension reform through the appointment of an inter-ministerial committee in this direction with specific terms of reference."

"Through dialogue with the social partners, political forces and public debate, we are setting the end of 2025 as a milestone date for submitting the bills to Parliament," he added.