This morning the appearances in the Economic Regime Commission began to discuss the budget proforma for 2022.
The Ecuadorian Social Security Institute (IESS) will receive $ 1,251 million less in proforma 2022 of what he had requested from the Ministry of Economy and Finance. The president of the IESS, Francisco Cepeda, explained this morning before the Economic Regime Commission, which deals with the 2022 budget proforma, that the budget requirement for the organization in 2022 was $ 2,824 million; However, what is assigned by the Ministry is $ 1,583 million.
As required by the IESS, $ 2,199 million correspond to pensions; $ 25 million of occupational hazards; in addition $ 135 million for Rural Social Security (SSC) and $ 473 million for Health Insurance. However, they have been assigned $ 1,436 million for pensions, $ 13 million for Occupational risks, $ 134 million for the SSC and nothing for health.
The most serious and urgent problem to be solved would be precisely that of health. Cepeda explained that in total health debt that has been accumulating for several years now arrives to $ 4,397 million. This is due to the fact that the State has not paid the attention that by law the IESS must provide to patients with catastrophic illnesses and to retirees.
However, a payment agreement on this issue has not yet been reached. In any case, he warned that when there is no money necessary to meet their benefits, the IESS divests Biess funds in order to compensate for this deficit. In the case of health there is already a fund of just $ 79 million, which would generate problems in this same 2022, Well, what is required to divest is at least $ 497 million.
A few months ago, the employer representative on the IESS Board of Directors had mentioned that the health fund was bankrupt. Apparently he was referring to this lack of money in said fund.
On the other hand, Cepeda explained that at the moment the issue of pensions it still has room for divestment, however this could only go on for three more years. Therefore, he said, it is necessary to start talking about structural solutions for the issue.
Meanwhile, the president of the IESS recalled that the health debt has grown significantly in the last fourteen years. But now, through work tables, they are seeking to reach a payment agreement. The idea is that the state could pay at least $ 1 billion in 2022 on verified debt. In the budget proforma it has been indicated that From any sale of assets, resources could be designated for the cancellation of the debt with the IESS. The rest of the debt would be canceled, first incorporating a methodology to carry out an agile audit on the securities.
About the topic, Olga Núñez, Undersecretary of Budget, commented that health payments can only be made once the relevance of the debt is agreed. He also recalled that the financial and structural problems of the IESS became much more complex after the approval of the Labor Justice Law, in which the 40% contribution to the IESS was eliminated by the state.
Thus, between 2015 and 2018, the contribution was not received and the IESS was disinvesting the resources of the pension fund. Regarding the SSC, insurance to which practically all the requested resources were assigned, Núñez stressed that the previous government raised the pension for its retirees from $ 60 to $ 100. He commented that the only contributor in this model is the head of the family and he only pays $ 2 a month. This fee guarantees the membership of the whole family. This increase that was made did not have an actuarial study. In this sense, this insurance has also been undercapitalized, he said.
Meanwhile, the manager of the Biess, Freddy Monge, reported that this entity could renew about $ 1.47 billion of internal bonds as part of the financing sources for the proforma. He said that this issue does not affect the delivery of unsecured and mortgage loans.
This morning also participated in the Commission, representatives of the Association of Municipalities of Ecuador (AME), Congope and Conajupare. All the representatives of the sectional governments asked the assembly members to guarantee the payment of VAT (about 140 million) until next January 2. The AME representative complained that there is a symbolic debt for 2020. However, some assembly members, and Olga Núñez, undersecretary of budget, made it clear that the budget reduction that occurred in 2020 was generated by the fall in permanent income and not permanent, as one of the consequences of the pandemic.
Likewise, a communiqué was read within the Commission by of the Ministry of Economy in which he established the names of those who will be part of a technical team that will support the Commission on budget questions. The designated officials are Olga Núñez, Undersecretary of Budget; Carlos Carrera, Undersecretary of Public Financing; José Mieles, Undersecretary of Fiscal Relations; Juan Lorenzo Maldonado, Diego Carrasco and Xavier Acuña, advisers.
Meanwhile, today also came the manager of Petroecuador, Pablo Luna, to explain the increase in production for 2022, which will register an increase, among others, for the exploitation of platforms A and B of the Ishpingo. These already have an environmental license. (I)
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