The Ecuadorian Social Security Institute (IESS) is going through a difficult period. Their economic difficulties occur at the same time as the state has serious organizational problems, making it a dangerous cocktail for social security. The expert’s warning is not new.

For the first time, IESS and the state are having liquidity problems at the same time, putting members and pensioners at risk

IESS is choked by lack of liquidity. The entity has around 3.5 million members and 600,000 pension beneficiaries. However, contributions are not enough to maintain pensions: there is a shortfall of at least 2.5 billion dollars and the payment of 40% of pensions that the state must make by law, which has not been fully met since 2012. Institution Closed in 2023 with accounts in the red and a crisis like has not been seen so far: a lack of cash that cannot be covered by the Government in return; This cannot possibly be a ‘salvation’ for an institution to which it also owes more than 10 billion dollars (including the medical debt that has been dragging on since 2006).

The last Government formed a commission that made proposals to try to solve the structural problems of IESS, many of which came up for discussion, but it is not known whether the new Executive will analyze them or will favor other options. Meanwhile, the population is aging and there are fewer contributors, there is also corruption, poor hospital management, among other factors that do not help at all.

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On the part of the branches, there is also a bill on the reform of IESS and Biess, regulations that are still being processed in the State Assembly. Next Tuesday or Wednesday the report will be known for the first discussion. It has favorable criteria, say its proponents.

Eduardo Peña Hurtado, the representative of the Presidency of the Republic in that institution, was recently sworn in as the new president of the IESS Board of Directors. The members hope that in this administration they will be able to analyze and implement or initiate measures to achieve the improvement and sustainability of the Ecuadorian Social Security Institute. (OR)