Plans to pay off ZUS arrears, backed by Cabinet

The Cabinet and the Tripartite Committee has backed the draft bill on paying off the Social Insurance Office (ZUS) arrears towards pension funds (OFE). According to the proposed version, OFEs would receive bonds with a maturity date in 2011, which "Will increase the ease of managing the investment portfolio," claims deputy and economy minister Krzysztof Pater. This will involve bonds with variable interest, which will be based on the 52-week T-bond yield. Pension funds will not receive any coupons, but will instead get a discount margin. "We offer lower conversion prices and the Treasury will pay cash on the maturity date. We plan to carry out the transaction, as smoothly as possible," added Pater. OFEs have claimed that the current solution would be better for the State Treasury, as the discount is only paid out once. The bonds would be distributed from 2006. (Puls Biznesu, p. 8) M.M.