NSSF transfer was planned
Oct 21, 2004
FRESH reports about the transfer of National Social Security Fund (NSSF) from the labour ministry to finance reveal that the move was part of a long-term plan by the International Monetary Fund
By Steven Odeu
FRESH reports about the transfer of National Social Security Fund (NSSF) from the labour ministry to finance reveal that the move was part of a long-term plan by the International Monetary Fund (IMF) and the Government to reform the financial sector.
In one of its latest editions, the Indian Ocean Newsletter said the transfer was a condition set by the IMF in May last year, which the Government promised to fulfil before the end of this year.
In an interview on Tuesday, Gerald Ssendaula, the finance minister, said the transfer was not a conditionality from IMF, but an issue which had been discussed for long.
“It was not necessarily a conditionality as rumours say. When we embarked on reforming the financial sector, it was recommended that all institutions which handle huge sums of money are monitored by the Bank of Uganda to maintain strong macro-economic stability. The central bank has to know how the money is got and utilised,†Ssendaula said.
In a letter to the IMF, Ssendaula said the Government had a proposal to reform the pension system to generate long-term savings for private capital formation.
He said restructuring NSSF was part of the pension reforms.
FRESH reports about the transfer of National Social Security Fund (NSSF) from the labour ministry to finance reveal that the move was part of a long-term plan by the International Monetary Fund (IMF) and the Government to reform the financial sector.
In one of its latest editions, the Indian Ocean Newsletter said the transfer was a condition set by the IMF in May last year, which the Government promised to fulfil before the end of this year.
In an interview on Tuesday, Gerald Ssendaula, the finance minister, said the transfer was not a conditionality from IMF, but an issue which had been discussed for long.
“It was not necessarily a conditionality as rumours say. When we embarked on reforming the financial sector, it was recommended that all institutions which handle huge sums of money are monitored by the Bank of Uganda to maintain strong macro-economic stability. The central bank has to know how the money is got and utilised,†Ssendaula said.
In a letter to the IMF, Ssendaula said the Government had a proposal to reform the pension system to generate long-term savings for private capital formation.
He said restructuring NSSF was part of the pension reforms.