Government begins trying to pay down $1.4 billion dollar debt to “La Caja”

October 7^th, 2015 (ICR News) Costa Rican president, Luis Guillermo Solis announced that the government has made a payment of ¢25 billion, or about US $46.7 million, towards its debt of some US $1.4 billion to the Costa Rican social security and public health system known as CCSS, or “La Caja” during a Tuesday press conference.

The payment represents little more than 3 percent of the government’s arrears.  The government still owes some ¢750 billion, or about $1.4 billion, which remains to be raised.

Among the options being considered by the government is a loan from the World Bank of about US $424 million, which would reduce the debt by another 40 percent, though the loan requires the approval of lawmakers in the Legislative Assembly.

The massive debt is the result of unpaid employer contributions which the government owes for its tens of thousands of employees.  Also included in the debt is health services rendered to the country’s prison population.

“This is no small gesture, it reflects the will of the government to fulfill an obligation which has not always been met on time by the government […] It was a huge effort,” president Solis told reporters.

Also present was CCSS president, Maria del Rocio Saenz, who said the money would be invested in public health infrastructure, as well as the purchase and maintenance of equipment, both in the country’s public hospitals and local clinics.