New debt notes to settle hospital arrears

$78 million for patient costs covered by Ministry

The Cabinet will soon issue new debt notes to raise funds for paying arrears owed to hospitals. The Parliament ratified a law allowing the Cabinet to borrow a maximum of $78 million, through Eurobonds or Treasury bills, for this purpose.

The notes will have a five-year maturity and could be traded at the financial market. The yield offered on the notes should not exceed 80 percent of the yields currently offered on government bonds.

Funds raised from the issuance shall cover hospital arrears accumulated between 2000 and 2011.

The Ministry of Health covers patients who are not subscribed to the National Social Security Fund (NSSF), or other coverage schemes, such as public sector employees of cooperatives. The Ministry has contracts with hospitals that receive these patients. An annual budget is allocated for each hospital. According to an official at the ministry, these arrears represent the additional yearly amounts spent on patients covered by the ministry.