Cyprus ends state borrowing from the Social Insurance Fund

On April 20, 2026, the Labor Advisory Board, led by Minister of Labor Marinos Mousiouttas, held a session to discuss the pension system reform. A key outcome of the meeting was the official agreement to terminate state borrowing from the Social Insurance Fund. The outstanding state debt to the fund currently amounts to 12 billion euros. The discussion also focused on the investment policy regarding the first pillar of the pension reform and the status of provident funds in the second pillar. A technical committee has been established to address issues surrounding the second pillar. The Ministry of Labor is scheduled to present the updated investment policy and provide responses to pending questions from social partners at the next meeting on May 4, 2026. This move marks a significant shift in the management of national pension assets.