IESS asset sale proposed to address Ecuador social security liquidity

President Daniel Noboa has proposed the sale of unproductive real estate assets belonging to the Ecuadorian Institute of Social Security (IESS) to generate approximately $2 billion in liquidity. The goal is to support the functioning of the social security system amid significant structural deficits.

Experts note that while the IESS holds approximately $1.66 billion in real estate and investment assets, not all are eligible for sale. Assets must be classified as non-productive, non-administrative, and non-service-oriented to be considered for disposal. Currently, only about $7 million is officially registered as available for sale. Any sale must follow specific regulations, including public auctions and technical, economic, and legal reports, to ensure transparency.

Analysts warn that while the sale could provide a one-time influx of cash, it may not resolve the underlying annual deficits. For instance, the pension fund is projected to face a gap between $3.4 billion in contributions and over $7.4 billion in expenditures, while the health fund also faces a significant deficit. Critics also point to historical financial decisions and legislative changes that have contributed to the current instability of the institution.