Govt. to cough up unpaid CCSS contributions

The Costa Rican government has reached an agreement with social security agency CCSS to pay 47.6bn colones (US$114mn) in unpaid contributions between April 1997 and February 2001, local press reported. Under the terms of the deal, the government will pay three loans the CCSS took out with international lenders for equipment and infrastructure projects: US$40mn from Spanish bank BBVA and the Spanish crown; US$27mn from the Inter-American Development Bank; and US$32mn from Finland. The loan payments will free up about 3bn colones a year that can now go to improving service, CCSS chairman Eliseo Vargas said. The CCSS will also transfer a US$11mn debt with the country's invalidity and life insurance fund to the central government. However, the state still owes the agency another 17bn colones in back payments, which the paper said would be paid early next year.