December 12, 2018

Secu: better debt amortization in 2012

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The creation of this sinking fund was the subject of many debates in the National Assembly, with sometimes heated exchanges on the nature of this deferral of debts on future generations who will have to pay a note no generated by their own expenses. Meeting at the end of April, the CADES board of directors approved the accounts for the year 2012. At the end of December, the fund’s resources totaled 16 billion euros, of which 6.5 billion came from the CRDS (1), 5.7 billion from the CSG, 2.1 billion from the FFR and 1.7 billion from the social levy on capital income. In parallel, CADES will have paid 4.1 billion euros in interest to investors. The balance of € 11.9 billion will be dedicated to the amortization of the social debt, in line with the target set by the Social Security Financing Act for 2012.
Thus, of the 209 billion euros of debt taken over by the CDES since 1996, only 137.5 billion euros remain to be amortized. However, this sum is part of the overall amount of public debt. that the state must bear. According to INSEE (2), at the end of the fourth quarter of 2012, the public debt of Maastricht, which is a gross debt, stood at 1,833.8 billion euros, up 15.8 billion from in the previous quarter. INSEE specifies in the latter register that “the indebtedness of social security organizations decreases in parallel with a reduction in cash flow”. The contribution of social security funds decreased by 14.6 billion euros, a decrease which “is mainly attributable to CADES (-15.6 billion, of which -12.9 billion short-term securities)”. Unedic (- € 4.2 billion) and the MSA (- € 0.9 billion) also reduce their debt. On the other hand, CNAF and hospitals borrowed $ 2.4 billion and $ 2.1 billion, respectively, and Acoss has $ 1.9 billion in debt. In total, Social Security contributes nearly 10% of France’s public debt. An amount that probably explains the pressure recently exerted on Paris by the Brussels Commission, which is waiting for France to revise its pension system and to carry out structural reforms with a view to reducing deficit targets below 3% of GDP. .