The Social Security Financial Stabilization Fund (FEFSS), which serves as a reserve buffer to pay old-age pensions, threatens to take a fall of 2.7 million euros with Credit Suisse. According to the latest FEFSS report and accounts, which date back to 2021, the Fund had acquired 171,380 Swiss bank shares for a value of EUR 2.7 million.
With the successive devaluation of Credit Suisse shares and their conversion to UBS assets, the bank that took over the credit institution, the Social Security Fund, could lose all the money invested there.
However, Labor Secretary Ana Mendes Godinho assured last week that the Social Security Financial Stabilization Fund’s (FEFSS) exposure to the historic decline of the Credit Suisse stock market is “minimal”.
“What I can assure you is that the exposure is in fact minimal or negligible (…) the result of a great ability to diversify the applications themselves. That is what we must always protect through the Stabilization Fund, which is precisely excessive dependence on the market,” said Ana Mendes Godinho at the time.
In fact, and according to the 2021 report and accounts, the Fund’s exposure to Credit Suisse is EUR 1.47 million, representing only 0.00634% in the portfolio as a whole of EUR 23.2 billion.
This fund is a social security reserve whose purpose is to ensure the payment of pensions for up to two years. Until the first half of 2022, it only had provisions for about a year and a half.
Salomé Pinto is a journalist for Dinheiro Vivo
Source: DN
