Montevideo, July 11, 2024 – The Casmu mutual fund has sent a request to the board of directors of the Banco República (BROU) to obtain a new loan of approximately $1,000 million. This request, intended to solve the liquidity problems faced by the institution, was confirmed by sources from El País.
The letter was received by BROU on Thursday afternoon, coinciding with the start of the bank’s weekly board meeting. However, the request was not discussed at the meeting, since a financial and credit analysis must first be carried out, which is expected to be ready next week. The next board meeting is scheduled for Wednesday, July 17.
Statements by the president of Casmu
At a press conference on Wednesday, Casmu president Raúl Rodríguez assured that employees’ salaries will continue to be paid “on time and in full.” Rodríguez mentioned that, starting in November, the mutual fund will obtain a loan previously granted by BROU of $550 million.
However, this amount will be reduced by a $125 million advance recently approved by the state bank, which allowed Casmu to pay the July 5 salaries on time. In addition, the State Health Services Administration (ASSE) advanced a payment of $80 million for services rendered, which also helped meet salary obligations.
Restructuring plan and new credit line
The request for this new line of credit comes in a critical context, as the Ministry of Public Health (MSP), headed by Karina Rando, has given a period of 10 business days from July 2 for Casmu to present a more complete restructuring plan.
This plan is an essential requirement to access a US$56 million trust fund, intended to cover salaries and settle debts with laboratories and software companies. The deadline to submit this new proposal expires on Tuesday, July 16.
Casmu’s Financial Situation
Rodríguez stressed that Casmu is not “overwhelmed,” although he acknowledged that the institution is facing a “cash flow problem.” He attributed part of these difficulties to the fact that in 2009, when Casmu separated from the Uruguayan Medical Union (SMU), the mutual fund started with a negative equity of US$ 100 million, which has been reduced by 46%.
For her part, Health Minister Karina Rando warned in Parliament that, if adjustments are not made, Casmu could face liquidity risks in the months of August, September, October and December 2024.
“It does not have the liquidity to be able to count on the necessary funds to meet its obligations on a day-to-day basis. The company does not have sufficient funds available to meet future salaries and suppliers,” said the minister.
With more than 180,000 members, 4,000 staff and 3,000 doctors, Casmu faces a significant challenge in stabilising its financial situation and ensuring the continuity of its operations.
