Generations Backing Reserve
The Council of Ministers has issued a decree-law allowing borrowing from the Future Generations Reserve to support the country's General Reserve. The aim is to manage financial requirements in an organized manner and to maintain the Fund's assets from unregulated withdrawals. The decree establishes strict controls over the borrowing process, including setting repayment periods, interest rates, and repayment arrangements, while ensuring that loan repayments take priority from state revenues when there is a budget surplus. It also stipulates that the total borrowings during a fiscal year should not exceed 100% of the average returns over the past five years, and that the accumulated loan balance should not surpass 10% of the Reserve's assets. Increasing borrowing beyond these limits is prohibited. The law's goal is to achieve sustainable financing while safeguarding national wealth and ensuring a balance between present demands and the rights of future generations.
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