The Polish government this week seized $51bn of privately run pension funds and transferred them back into state control in a sharp reversal of a reform.

Privately managed fund companies that are part of the public pension system transferred all of their Polish sovereign bondholdings and other assets worth a total of 153.15 billion zlotys ($48.9 billion) to the finance ministry, which redeemed them, Finance Minister Mateusz Szczurek said during a news conference Monday.

The government will cancel the bonds it has taken, increasing its pension system’s long-term liabilities. The move is set to dramatically improve Warsaw’s finances as well as help close the funding gap.

During Monday's unprecedented operation, in a matter of hours Poland cut its public debt by some 9% of its annual economic output. High quality global journalism requires investment.

Look at the future of many pension systems.