Investor Presentaiton
Fiscal risks
• Introduction of the NHS: in the first years of the system the government is expected to cover the deficits of
autonomised public hospitals until a level of productivity and cost efficiency is reached so that their expenditure is
covered through revenues from NHS participation. Expenditure pressure on the government budget is mitigated by
the global budget of the NHS structure with frequent changes in unit prices allowed to absorb fluctuations in
demand.
• Judicial proceedings pending before the courts and relating to the Law on the reduction of emoluments and
pensions was deemed unconstitutional by the Administrative Court in March 2019. The Government submitted an
appeal before the Supreme Court. In the event of ratification of the original decision, the total net payments are
estimated at EUR 0,8 bn for a period of four years.
• The fiscal surplus allows buffer for absorption of potential new expenditure.
• Upside risk: revenues from the state owned asset management company.
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