President Santiago Peña met on Monday with current Economy and Finance Minister Óscar Lovera and seven former ministers of the portfolio for a detailed analysis of Paraguay's fiscal situation. The meeting, held at the Ministry of Economy and Finance (MEF) headquarters, focused primarily on transparency of public accounts and the recognition of debts that were not properly recorded.
According to participant accounts, one of the central points discussed was the discovery of a $280 million debt with health sector suppliers that did not appear in the MEF's official records. Former minister César Barreto explained that the problem arose from a disconnect between the financial systems of the Ministry of Health and the MEF, where invoices were received but not recorded in the state's financial management system, making the commitments "invisible." This debt is part of a total liability of approximately $1.3 billion that the state maintains with suppliers.
During the meeting, the former ministers, including Germán Rojas, Benigno López, Manuel Ferreira, Miguel Gómez, Marco Elizeche, and Juan José Galeano, warned that recognizing these debts will push the fiscal deficit to levels close to 4% of Gross Domestic Product (GDP) this year and next. They expressed skepticism about the country's ability to return to the 1.5% limit established by the Fiscal Responsibility Law by 2028, especially in a context of election years.
Manuel Ferreira was among those who emphasized the need for transparency, stating he told President Peña that "we cannot continue hiding trash under the rug." The recommendation was for the government to communicate openly with international organizations, such as the International Monetary Fund and rating agencies, about the true fiscal situation, even if it means admitting a larger deficit than initially projected.
As a solution, Minister Lovera reportedly informed that a new unified system for managing goods and services for all public entities is being implemented to prevent similar situations from recurring. To settle the commitments, part of the debt will be paid through factoring (assignment of collection rights), and another part should be incorporated into the 2027 budget, possibly with support from a bond issuance.