He Republic Bank (BROU) announced a loan of 1 billion Uruguayan pesos, about 25 million dollars, to Medical Union of Uruguay Assistance Center (Casmu) with the intention of resolving the mutual fund’s liquidity in the midst of a financial crisis.
However, the loan approval – which was unanimous with the exception of the representative of the National Party – It also has a fundamental condition: the State must act as guarantor for the mutual insurance company so that the credit is confirmed.
According to El País, the BROU would provide the Casmu a total of 25 million dollars, equivalent to 1,000 million Uruguayan pesos, so that the mutual fund can finally resolve its liquidity.
Previously, the Ministry of Public Health (MSP) had ordered Casmu to submit information proving that it had “corrected the situation of economic-financial imbalance, under penalty of intervention or other consequences provided for by the regulations.”
Casmu would have cash flow until April 2025
Faced with the possibility of credit, the mutual had offered to transfer Fonasa installments of 200 million Uruguayan pesos per month, with the intention of finishing paying the loan in just five months, although the payment would not be made directly by the Casmu but it would be through Social Security Bank (BPS).
Meanwhile, last week the mutual presented its restructuring plan and its president Raul Rodriguez He assured that the cash flow allows the mutual fund to reach April 2025 in “good conditions” and aims to improve “efficiency in services.”
The president of Casmu, who took over in 2022, said that the mutualist “gave credit” and regretted: “Many paid, but there were boxes of documents here in this company for 150 million pesos that were not paid. Every year there were 50 million pesos of loss”.
About the new escrow that requested Casmu for 56 million dollars, Rodriguez said: “We need it to access credits with other institutions and lower our financial costs.”
The pressure of the MSP
Prior to the delivery of the document, the MSP clarified that the request for information “was not a threat, but rather a summons as established by law” and clarified: “The healthcare risk arises from the Casmu board’s own approach”, noting that it has “some overdue obligations”.
“The MSP has no interest in financially drowning Casmu,” the portfolio led by Rando stressed in a statement and recalled the approval of a guarantee for which they received a trust worth 200 million Indexed Units (UI).
In turn, he recalled that since August 2022 there are more than 300 non-medical workers per month, in unemployment insurance publicly funded, while ASSE keeps up to date with the payment of the services purchased from Casmu and there is also technical assistance from the Monitoring Unit.
“It is a mistake to compare the situation of Casmu with House of Galicia. There are many points that differentiate the situation of one provider from the other. Among them, we highlight that Casa de Galicia requested bankruptcy due to its state of insolvency and that it was the Judiciary that decreed the closure, not the MSP,” the letter stated.
Source: Ambito
