The social security reformthe greatest milestone in the reformist agenda of the government of Luis Lacalle Poucould be modified if the PIT-CNT manages to carry out the constitutional plebiscite that he defends.
The decision of the union center, which this week will begin collecting signatures so that the popular consultation is legally endorsed, could lead the main credit rating agencies to review the improvements in the sovereign debt notes that the Uruguay achieved throughout this year.
The first to issue a warning in this regard was Standard & Poor’s. Constanza Pérez Aquino, an analyst at the rating agency, told the weekly Busqueda that “Uruguay’s rating (‘BBB+’ and ‘stable’ outlook) incorporates our opinion that the social security reform reflects the institutional and political commitment of Uruguay to contain greater pressures on the budget.”
Last June, Fitch raised the long-term rating in foreign currency and local currency by one point Uruguay to ‘BBB’ from ‘BBB-‘, highlighting a stable rating outlook.
Among the main reasons for the decision, he highlighted the approval of the pension reform, which he described as a “strong demonstration of fiscal responsibility, in contrast to previous years where pension rules were made more flexible.”
For its part, Moody’s In August, it ratified the upgrade it had delivered in May, when the Uruguayan public debt rating went from stable to positive.
Then the rating agency, which highlighted the successful implementations of fiscal policies and the State’s commitment to the implementation of the tax rule, had not ruled out a new improvement, something that could be affected if the social security reform.
The main points of the reform that the PIT-CNT intends to modify with the plebiscite that is rejected by the multicolor coalition and by sectors of the Wide Front (FA), there are three.
“Eliminate financial profit and AFAP of social security, establish the basic retirement age at 60 years, and that the retirement minimum be equivalent to a national minimum wage,” explained the union leader Marcelo Abdala.
Source: Ambito
