What will happen to the increase promised to retirees?

The director of the General Administration of Revenue (DGI), Publio De Gracia, said this Sunday that the increase for pensioners earning less than $350 is being maintained, as announced a few weeks ago by President Laurentino Cortizo.

Although he did not reveal where the revenue will come from, the official stated that There was no talk of changing plans to increase pensions so that the minimum would be $350at least for the upcoming payment.

“When the president communicates, he doesn’t say he won’t listen. There is a promise that must be fulfilled next week. The Executive, with the CSS and the MEF, are taking steps. What the president said is true,” De Gracia explained to the television media.

Cortizo stated last October that retirees earning less than $350 a month will get a raise starting November 20th.

The funds would be obtained from the payments that Minera Panamá would make tol the country, which came into effect this week, but are in a restricted account at the National Bank and are awaiting a decision by the Supreme Court of Justice.

What will happen after payment on November 20th?

De Gracia emphasized that the fate of this increase will have the same fate as the ruling of the Supreme Court of Justice, which means that the promise includes only payment from 20. stud and then it depends on what the magistrates decide.

“This is a developing story. Before October 20 of this year, there was a contract and we as the Government must implement it. The promise of November 20 will be fulfilled, but the (long-term) fate of the adjustment will depend on the Court,” he added.

In this sense, the economist and former deputy director of the Social Security Fund, Francisco Bustamante, questioned the measure because if there is already a deficit and it was predicted that the silver from the mine will not be touched, the deficit will grow more than it is.

The partial increase will affect about 120,315 pensioners, who are currently surviving on less than $350 a month.

On the other hand, De Gracia stated that if the contract with Minera Panamá is declared unconstitutional, the money that the company paid this week in the form of royalties should not be returned.

This week, Minera Panamá made a payment of royalties and taxes in the amount of 567 million dollars, in accordance with its contractual obligations with the State of Panama and within the established period of 30 days.