{
  "title": "Nicaragua: Selected Issues",
  "publication": "IMF Staff Country Reports, June 27, 2017",
  "sourceUrl": "https://www.imf.org/en/publications/cr/issues/2017/06/27/nicaragua-selected-issues-45009",
  "canonical": "https://www.imf.org/en/publications/cr/issues/2017/06/27/nicaragua-selected-issues-45009",
  "overlayPath": "/en/publications/cr/issues/2017/06/27/nicaragua-selected-issues-45009/index.md",
  "summary": "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.",
  "publishDate": "2017-06-27",
  "series": "IMF Staff Country Reports",
  "sections": [
    {
      "heading": "Overview findings",
      "content": "- The social security system is projected to run out of liquid reserves by 2019.\n- The anticipated exhaustion of reserves occurs several years earlier than previously expected.\n- To avoid burdening the budget, reforms to the system are urgently needed.\n- A politically acceptable, pragmatic solution appears within reach, but authorities should act quickly to avoid a costly bailout of the system."
    },
    {
      "heading": "Projections and risks",
      "content": "- Projection: liquid reserves exhausted by 2019.\n- Risk: exhaustion would likely require a fiscal bailout that would burden the budget.\n- System type: defined-benefit, pay-as-you-go, which must be sustained for another generation of workers while maintaining improved health care benefits."
    },
    {
      "heading": "Analysis needs and reform design",
      "content": "- Required analyses:\n  - A deep actuarial analysis.\n  - A deep economic analysis.\n  - A deep operational analysis.\n- Purpose of analyses: to design a comprehensive reform program that ensures the sustainability of pension benefits and the maintenance of improved health care benefits."
    },
    {
      "heading": "Policy recommendations (high level)",
      "content": "- Implement a comprehensive reform program informed by actuarial, economic, and operational analysis.\n- Ensure reforms allow the defined-benefit, pay-as-you-go system to sustain itself for another generation of workers.\n- Preserve improved health care benefits alongside pension sustainability.\n- Act quickly to implement reforms to avoid a costly fiscal bailout.\n\nInternational Monetary Fund. Nicaragua: Selected Issues. June 27, 2017.\n\n---\n\n Content in this bundle\n\n- Country Report\n  - Country Report (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Country Report (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/cr/issues/2017/06/27/nicaragua-selected-issues-45009"
    }
  ],
  "bullets": [
    "[Markdown version](/en/publications/cr/issues/2017/06/27/nicaragua-selected-issues-45009/index.md)",
    "[Structured JSON version](/en/publications/cr/issues/2017/06/27/nicaragua-selected-issues-45009/index.json)",
    "[Bundle manifest](/en/publications/cr/issues/2017/06/27/nicaragua-selected-issues-45009/bundle-manifest.json)",
    "Published: June 27, 2017",
    "Series: IMF Staff Country Reports",
    "DOI: https://doi.org/10.5089/9781484305645.002",
    "The social security system is projected to run out of liquid reserves by 2019.",
    "The anticipated exhaustion of reserves occurs several years earlier than previously expected.",
    "To avoid burdening the budget, reforms to the system are urgently needed.",
    "A politically acceptable, pragmatic solution appears within reach, but authorities should act quickly to avoid a costly bailout of the system.",
    "Projection: liquid reserves exhausted by 2019.",
    "Risk: exhaustion would likely require a fiscal bailout that would burden the budget.",
    "System type: defined-benefit, pay-as-you-go, which must be sustained for another generation of workers while maintaining improved health care benefits.",
    "Required analyses:",
    "Purpose of analyses: to design a comprehensive reform program that ensures the sustainability of pension benefits and the maintenance of improved health care benefits.",
    "Implement a comprehensive reform program informed by actuarial, economic, and operational analysis.",
    "Ensure reforms allow the defined-benefit, pay-as-you-go system to sustain itself for another generation of workers.",
    "Preserve improved health care benefits alongside pension sustainability.",
    "Act quickly to implement reforms to avoid a costly fiscal bailout.",
    "**Country Report**"
  ],
  "related": [
    {
      "title": "Country Report",
      "role": "report",
      "sourceUrl": "https://www.imf.org/-/media/files/publications/cr/2017/cr17174.pdf",
      "summary": {
        "path": "/-/media/files/publications/cr/2017/cr17174.pdf.md",
        "mime": "text/markdown"
      },
      "binary": {
        "path": "/-/media/files/publications/cr/2017/cr17174.pdf",
        "mime": "application/pdf"
      }
    }
  ],
  "alternates": {
    "markdown": "/en/publications/cr/issues/2017/06/27/nicaragua-selected-issues-45009/index.md",
    "json": "/en/publications/cr/issues/2017/06/27/nicaragua-selected-issues-45009/index.json",
    "bundleManifest": "/en/publications/cr/issues/2017/06/27/nicaragua-selected-issues-45009/bundle-manifest.json"
  },
  "generatedAtUtc": "2026-09-23T11:53:02.833Z"
}