Ministry of education requested 20 million in bonds for voluntary retirement

The Ministry of Finance reported that the Ministry of education has requested $20 million in State bonds to pay for the voluntary retirement of 470 teachers.

This new modality of payment for that purpose, was established in the Executive Decree 99  that published in the official registry last week, and despite the controversy that has generated the payment by bonds, the Government says that the program has been well received.

Fausto Herrera, Minister of finance, said during an interview with a digital media that currently there are about 6,000 people registered in the program, and noted that the compensation to the voluntary retirement of teachers and other civil servants, which is approximately $50,000 in average, is additional to the severance and pension of the IESS.

Such retirement applies to persons under 70 years old, who will receive government compensation in bonds that could be traded on the stock market, according to Herrera, but acknowledged that in the sale they can lost between 12% and 30% of the nominal value.

Herrera also clarified that they are not giving physical documents  to  the retirees, because the bonds are virtual, and that the utilities are directly deposited in their personal accounts.