The Government of President Lenin Moreno owes about USD 806 million to the Ecuadorian Social Security Institute (IESS). The delays in payments come from 2020 and, in these months, they have not made any payments to social security.
The Executive had to cancel USD 1,567 million, but only paid USD 1,267.90 million generating a delay of USD 299.93 million, according to the data of the 2020 budget execution. In the same way, in the budget execution from January to April of 2021, it is evidenced that the Government owes more than USD 506 million.
The President of the Republic, Lenín Moreno, swore that he was going to honor the debt with the IESS, but they have not complied with the corresponding payments, so there could be inconveniences to sustain the pension fund, according to several experts.
For his part, Mauricio Pozo, Minister of Economy and Finance, indicated that they would pay all outstanding debts before the end of this Government and stressed that they still have to define the form of payment, the amounts and the calendar.
At the moment, the Government does not have liquidity to cancel this debt, so they would be thinking of making these payments with bonds, in a commitment to invest in bonds, and only a part in cash. In addition, it would be thought that the BIESS access a loan to generate liquidity abroad.
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