World Bank clarifies on NSSF funds

Jul 04, 2012

The World Bank yesterday clarified that the Government has not asked it for support to borrow funds from workers’ savings in the National Social Security Fund (NSSF).

By Vision Reporter

The World Bank yesterday clarified that the Government has not asked it for support to borrow funds from workers’ savings in the National Social Security Fund (NSSF).

“We wish to clarify that the Government has neither approached us for support nor have we okayed their intentions in this regard.

“However, the Government enjoys its rights to borrow and the NSSF enjoys their rights to lend if they are backed up by the requisite legal and regulatory framework,” the bank said in a statement in response to a business lead story on Monday titled “World Bank supports government use of NSSF funds.”

The bank pointed out that the article created the impression that the Government had asked for World Bank support to borrow funds from workers’ savings in NSSF.

The statement explained that it was premature and incorrect to state that the World Bank had supported plans by the Government to borrow a sh1 trillion from the national pension fund, “when in fact the Government has not shared those plans with us or asked for our advice on the same.”

Plans are underway by the Government to use NSSF cash through an infrastructure bond.

 

 

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