Cooperatives Ministry: Gov’t Debts to SSO Hit $11.2 Billion by March

September 16, 2020
government

T he government’s debts to the Social Security Organization, Iran's biggest social insurance company that provides coverage to wage-earners and salaried workers as well as self-employed persons, amounted to 2,944 trillion rials ($11.2 billion) by the end of last fiscal year (March 19, 2020), the Ministry of Cooperatives, Labor and Social Welfare reported.

Although a fraction of the debt had accumulated before the year ending March 2011, a significant sum of it has been incurred over recent years.

The current government accounts for as much as 81% of the principal debt (excluding the nearly 20% compound interest due on late payment and other penalties), i.e., 875 trillion rials ($3.3 billion) of 1,080 trillion rials ($4.1 billion).

In 2005, when Mahmoud Ahmadinejad took office as Iran's president, the government’s debts to the organization stood at 37 trillion rials ($149 million). The debts had grown by nearly 16 times when he left office in 2013, ISNA reported.

“Figures provided by the ministry might be different from those published by the Plan and Budget Organization. However, the fact that the government’s outstanding debt has impeded the cycle of efficient investment by SSO is undeniable,” Abdolhossein Sabet, the former managing director of Social Security Investment Company (the investment arm of the organization known by its Persian acronym Shasta) told the Persian-language daily Shargh.

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