2,500 infants on the street, 83,000 families in despair

2,500 infants and toddlers of working parents who were hosted by the 25 nurseries of OEE will remain without shelter or care.

The borrowers of social housing will also be exposed since the memorandum demands the closing of both organizations. And this is because there is no provision for 83,000 mortgage borrowers that owe OEK and banks almost 1.2 billion euros.

The applications of 58,000 financially weak citizens who managed to join the rent subsidy program are also uncertain, as is the construction program of the organization that was preparing to deliver 20 settlements with 1.300 homes across the country.

OEK had planned a program of social tourism which could have been used by 380,000 beneficiaries (fewer, however, than last year) while 2,700 tourist accommodation owners who had signed up could benefit from it as well.

Nevertheless, Labour minister George Koutroumanis argued that the issue is not closed yet and that possible loss of the 350 million euros collected annually by the insurance contributions for the operation of the two financial institutions will cause the financial bleedout of IKA as well.

Regarding pensions, the Labour ministry is in final negotiations with ND and LAOS to reduce supplementary pensions retroactively from January, but also main pensions in SOEs, banks and NAT from September.

According to reports, a cap that will exceed 200 euros as well is once again placed on the 15% cut on supplementary pensions, too.

However, according to the memorandum supplementary pensions in the future will be converted into individual accounts without any guarantee of payment. This means that there will be no provision for a subsidy that for certain funds was three times the total amount of contributions. For example, the collected ETEAM IKA contributions are 10.5 million a year, while the expenditure for pensions is 37.2 million.

The shrinkage of all wages, not just the minimum ones, for the 2.5 million insured at IKA will deprive the fund of 2.5 billion euros. The reduction in employers' contributions by 5 percentage points according to the Troika demands will remove more than 1.5 billion euros from IKA. The memorandum provides for a reduction by 5-10% of major pensions in the PPC, OTE, National Bank, Commercial Bank, Agricultural Bank, ETVA, the former Olympic and NAT funds.