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LatinNews Daily - 21 May 2020

In brief: ILO highlights threat to Ecuador’s pension reserves

* A study by the International Labour Organization’s (ILO) Social Protection Department has warned that Ecuador’s ongoing fiscal crisis, exacerbated by the coronavirus (Covid-19) pandemic, could see the country’s pension reserves exhausted within the next 20 years. The report projects that increased unemployment and informalisation, as well as salary stagnation as a result of austerity measures, will dramatically undermine individual contributions to the national pension fund, while high levels of debt could prevent the government from maintaining its own contributions to the social security institute (IESS). The ILO warned that “the impact of the pandemic on the pension fund will depend on the speed with which the country, and therefore the IESS, recovers from the crisis”, and urged the government and social organisations to accelerate a “process of joint construction”, to “reach consensus on actions that guarantee the strengthening and sustainable development of the IESS”.

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