Nicaragua: Selected Issues

International Monetary Fund

No 2017/174, IMF Staff Country Reports from International Monetary Fund

Abstract: This Selected Issues paper analyzes Nicaragua’s social security system, which is projected to run out of liquid reserves by 2019, several years earlier than anticipated. To avoid burdening the budget, reforms to the system are urgently needed. A deep actuarial, economic, and operational analysis is needed to design a comprehensive reform program. Such a program must ensure that the defined-benefit, pay-as-you-go system can sustain itself for another generation of workers and that improved health care benefits can be maintained. A politically acceptable, pragmatic solution appears within reach. However, the authorities should act quickly to avoid a costly bailout of the system.

Keywords: ISCR; CR; GDP; Nicaragua; free zone; commodity; transfer pricing; CPS deficit; export tax free zones; commodity export; CPS balance; trade shock; commodity TP regulation; Pension spending; Pensions; Climate change; Natural disasters; Global; Caribbean; Central America (search for similar items in EconPapers)
Pages: 66
Date: 2017-06-27
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