SSIF financial assets register weak growth in 2020

(Photo: Jordan News)
AMMAN — The Social Security Investment Fund financial assets grew by only JD170 million between 2019–2020, reaching at the end of 2020 JD1,167 billion, compared to JD1,997 billion at the end of 2019, a growth rate of 1.6 percent, according to Mousa Al-Subaihi, an insurance and social protection expert and former spokesman for the Social Security Corporation (SSC).اضافة اعلان

The growth rate is the lowest since the establishment of the investment fund in 2003; it is equivalent to only 13 percent of the average annual asset growth, which used to reach 12.8 percent annually, Subaihi told Jordan News.

He also said that the insurance financial surpluses that are transferred annually from the SSC to the investment fund also decreased significantly in 2020, by 94.4 percent over the surpluses transferred in 2019.

“The surplus transferred to the fund in 2020 amounted to only JD29 million, while the financial insurance surplus transferred to the fund in 2019 amounted JD517 million,” said Subaihi, attributing the substantial drop to the effects of the COVID-19 pandemic, which led to a significant decrease in the market value of company stock prices.

“The most important reason is the weak transfer of cash surpluses from the Social Security Corporation due to the big expenditure on protection programs associated with the pandemic and defense orders,” said Subaihi, suggesting that SSC should stop all its protection programs, as “it is overstretched” and the assets will drop more in the next period if the situation stays as it is.

The millions that were lost could have been invested, he said, asking government entities to lend their support to the SSC and help come up with strategic plans to ensure the corporation’s sustainability.

Read more National News