The Minister of Economy and Finance, Pablo Arosemena, justified the lack of payment to the Ecuadorian Social Security Institute (IESS), which according to the authorities of this institution amounts to approximately 1.250 million dollars in 2023 (between April and September), the Government has already paid 4.2 billion dollars between 2021 and 2023 – more than any government, he said. But he also explained that in this situation he had to prioritize payments for issues such as the El Niño phenomenon and security.

The minister referred to the issue of IESS in an interview for Teleamazonas. After a few weeks, the social security services warned that there were significant delays in the payment of the 40% state contribution to the IESS and that this could even lead to non-compliance with pension payments.

Officials from the Ecuadorian Institute for Social Security also assured that while the Government owed IESS, Biess was buying bonds and thus financing the Government, and that it cannot continue like this.

In the meantime, a meeting of the members of the IESS Board of Directors with the Government bodies was held in Carondelet this Thursday afternoon, in order to seek solutions.

When asked about the problem, Arosemena said that it can be seen that there is a predisposition on both sides to find a possible solution. However, he did not confirm that an agreement had been reached yet. “I believe in the ability to find solutions,” he said.

In addition, he emphasized that payments will continue to be a priority and that “you cannot promise impossible things,” he said.

On the other hand, the minister pointed out that the government will bring a better economy than the one it got when he came to power. He said the fiscal deficit when they started was 7.7%, which means $8 billion, and now it will close at 2.5%, which is the equivalent of between $3.2 billion and $3.5 billion. Debt has also improved in both volume and quality. It started at 61.5% of GDP and will close in December 2023 at 55% of GDP. The debt was reduced by debt renegotiations with China and the largest debt-for-nature swap in Ecuador’s history.