The BIESS reached an agreement with the Ministry of Finance so that the payment is made maximum until August.
Maximum until August, the Ecuadorian Social Security Institute (IESS) will not receive 40% of the state contribution to the retirement fund.
It is difficult for the Bank of the Social Security Institute (BIESS) to offer deferred benefits of loan installments to members during the emergency, said Vinicio Troncoso, manager of the Bank.
Troncoso indicated that the state contribution corresponds to USD 140 million per month and that there is an agreement with the Ministry of Finance, so that in July or maximum in August, these resources can be used to sustain liquidity.
He indicated that while this agreement is finalized, it is necessary to guarantee payment to retirees and to the health system for members.
He argued that the payment to the 500,000 retirees will be made with the payment of employer contributions, with the payment of credits made by members and with the institution’s own liquidity.
“I am covering the deficit with the system’s own liquidity. BIESS has USD 20 billion invested and 4% of that amount corresponds to liquid resources that we have from reserves, ”he explained.
40% of the state contribution was returned to social security in 2019, after a ruling by the Constitutional Court.
For 2020, the Executive budgeted USD 1,331.4 million for the contribution for Disability, Old-Age and Death Insurance pensions; Work Risks; and Peasant.
Source: El Comercio, social networks
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