Tuesday 15 June 2021

Caja Is In Trouble, But There Are No Immediate Liquidity or Solvency Problems

"The Government of the Republic will never, ever, leave the Caja without the necessary backing to take care of us as a country. It is my guarantee," said President Carlos Alvarado

In the midst of a crisis due to the coronavirus pandemic, the Caja Costarricense de Seguro Social (CCSS) is requiring the government to pay a debt of ¢1.95 trillion colones to face the lack of income from worker-employer contributions.

In response, Costa Rica President Carlos Alvarado said: “there is no money.” He added that “these amounts, at this time, are not within the reach of the Government or the State”, but he clarified that “that does not mean that it is a rejection” as they seek to find a solution through dialogue.

- Advertisement -

The ¢1.95 trillion colones (+/- US$3.5 billion dollars) represents almost 70% of the money the Central Government requires this year to pay the salaries of its officials.

Finance Minister Rodrigo Chaves also replied that it is impossible, saying “it is outside the real possibilities of the country and the framework of macroeconomic responsibility”,

He added that in the midst of a pandemic where there is unemployment, companies without incomes and entities without sufficient funds to provide care, “the country must not dedicate disproportionate amounts to a single institution, but must be fair and balanced with all families, companies and institutions”.

The news spread like wildfire on the social networks, some media outlets digging the grave, while others burying the Caja.

- Advertisement -

Román Macaya, executive president of the CCSS, confirmed that the Board (its nine members) stated that the debt that the State has with the institution (for health insurance and pensions) amounts to ¢1.95 trillion, supported by accounting and financial records of the institution.

He clarified that the estimate does not include the amount that results from the execution of a judicial sentence that obliges the State to finance the first level of health care, that is, the Ebáis (Basic Teams for Comprehensive Care).

“It was suggested that the resources would help to maintain a strengthened institution to deal with the pandemic, to contribute to the economic reactivation of the country and to provide health services in the future with quality and opportunity that requires the Costa Rican population,” said Macaya.

The purpose of the Board’s decision requesting the payment, he explained, is to prevent further affectation of the CCSS, “an institution that is carrying a great burden with the attention of the pandemic and constitutes one of the pillars in the reactivation of the country”.

Though President Alvarado maintained firm that the “there is no money” to cover the request of the CCSS Board, he assured that “The Government of the Republic will never, ever, leave the Caja without the necessary backing to take care of us as a country. It is my guarantee as president”.

- Advertisement -

Despite the tough stand by heads of the Treasury and the Central Bank, that nothing could be done and that the country could not go bankrupt to save the Caja, President Alvarado was more conciliatory and affirmed that he was committed to strengthening and developing the Caja and proposed creating a bilateral team “to look for solutions with creativity”.

“On the part of the Board, proposals were made that were emphatically rejected by the minister and the president of the Central (Bank). A gigantic new challenge opens. What the CCSS means for our people has been clearly demonstrated, there are those who do not stop to meditate and seek solutions to avoid their bankruptcy. We have to join forces and start raising our voices. We cannot allow this,” said the President in a message on Twitter.

- Advertisement -

FACT CHECK:
We strive for accuracy in its reports. But if you see something that doesn’t look right, send us an email. The Q reviews and updates its content regularly to ensure it’s accuracy.

Ricohttp://www.theqmedia.com
"Rico" is the crazy mind behind the Q media websites, a series of online magazines where everything is Q! In these times of new normal, stay at home. Stay safe. Stay healthy.

Related Articles

Should the vaccination against covid-19 be opened?

QCOSTARICA - Six months after the start of vaccination against covid-19,...

Nicaragua’s Foreign Minister absent from the summit of Central American presidents

QCOSTARICA - The Daniel Ortega government sent its ambassador to Costa...

MOST READ

Today’s Covid News: Contagion rate in Costa Rica remains unchanged in the last week

QCOSTARICA - The contagion rate of covid-19 in Costa Rica in the last week did not change, a fact that is seen for the...

Today’s Covid News: A slight drop in new cases and deaths is seen

QCOSTARICA - Faced with wasting a vaccine dose when people in the priority groups scheduled do not show up, and a substitute cannot be...

The U.S. and Democracy in Nicaragua

Q REPORTS (Council on Foreign Affairs) Democracy is being destroyed in Nicaragua. This has been the long-term project of Daniel Ortega, the country’s dictator,...

The US improves travel alerts for Central America; Not Costa Rica and Nicaragua

QCOSTARICA - The United States has eased travel advisories for most Central American countries, with the exception of Costa Rica and Nicaragua, according to...

Today’s Vehicle Restriction: June 13, “EVENS”

Today, Sunday, June 13, only EVENS can circulate. The measure is countrywide and applied between 5:00 am and 9:00 pm, save for those under the...

The “rebound” effect boosted growth in Costa Rica’s economic activity

QCOSTARICA - Costa Rica's economic activity registered in April 2021 a year-on-year growth of 8.8%, a figure affected by a “base” or “rebound” effect,...

Costa Rica cannot feel safe from covid-19 before having about 80% of population vaccinated

QCOSTARICA - No doubt, vaccines are one of the most powerful tools to maintain control of Covid-19, but when it comes to entire populations,...

eHow to Become Successful in Online Casino Betting 

To become a successful gambler in the online industry, there is a lot to cover. It can be known to be a vastly different...

Tourism sector feels in crisis despite increase in international arrivals

QCOSTARICA - Despite the improvement in tourist arrivals reported in May, with more than 72,000 visitors, both the Cámara Nacional de Turismo (Canatur) and...

WANT TO STAY UP TO DATE WITH THE LATEST!

Get our daily newsletter with the latest posts directly in your mailbox. Click on the subscribe and fill out the form. It's that simple!

Log In

Forgot password?

Forgot password?

Enter your account data and we will send you a link to reset your password.

Your password reset link appears to be invalid or expired.

Log in

Privacy Policy

Add to Collection

No Collections

Here you'll find all collections you've created before.