In Nicaragua, IMF advises tough measures for social security

MANAGUA, Nicaragua – An International Monetary Fund delegation visiting Nicaragua is recommending that the country adopt tough measures to shore up a financially troubled social security system.

Among the recommendations are raising the retirement age from the current 60 years, increasing workers’ monthly contributions and raising the minimum number of weeks worked to qualify for a pension. It also advises “a combination of cuts and rationalization of operating and health costs.”

The IMF team says Nicaragua’s Social Security Institute otherwise risks continuing to run deficits and potentially running out of cash by 2019 under current policies The recommendations were published late Friday by the Nicaraguan Central Bank.

President Daniel Ortega said in response that his government will continue to guarantee social security and “seek consensus” on what actions to take.