The Ecuadorian Social Security Institute (IESS) would need to carry out several financial operations that would complicate its economic situation. This is due to the lack of payment by the Government of 40% of pensions, the difficulty in recovering the mortgage, unsecured and pledge portfolio, and the few options to obtain liquidity,.
Until December 2020, the need for financing the IESS would be USD 2.33 billion, which would put the liquidity of its bank, the Biess, at risk. Although in the first instance, the entity planned the divestment of USD 1.63 billion, the Superintendency of Banks indicated that this will be insufficient to fulfill all its obligations.
This would be because from January to December, the Disability, Old-Age and Death Insurance plans to have income of USD 3,012 million, but the projected expenses are USD 4,832 million, so, to cover the difference, only in this Insurance should divest USD 1.88 billion.
The same situation is evident with the Health Fund, which estimates to have revenues of USD 1,520 million, but expenses will amount to USD 2,093 million. In this sense, USD 573 million must be disinvested from this other fund.
Several experts point out that the situation would be further complicated, because the divestment of the Biess has several limitations, for example: it has around USD 8,000 million in government bonds, which could not be made liquid; It also has significant investments in trusts in the electricity sector, which are also not susceptible to divestment.
The only viable solution would be the payment of the debt that the Government maintains, since October 2019, and which now borders USD 1,416 million, but the payment agreements have not been finalized and the Ministry of Finance has ignored the requests of the IESS to cancel these values.
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