In a session marked by intense debates, the Paraguayan Senate on Wednesday approved a bill authorizing the Ministry of Economy and Finance (MEF) to pay late interest on commitments not settled within contractual deadlines, related to infrastructure construction certificates. The estimated interest amount is approximately US$100 million, while the government's total debt to construction companies exceeds US$300 million.
The bill, which received partial approval, was defended mainly by lawmakers linked to the cartista movement, who argued that the lack of timely payment generated economic and social tensions, affecting the construction sector's payment chain and harming suppliers and workers. According to them, the measure represents a necessary liquidity injection for companies facing difficulties, with several works halted and some construction companies already bankrupt.
Among the modifications introduced during the review, an article was included establishing the law's validity starting from the 2026 fiscal year. The bill also authorizes the MEF to make budgetary adjustments to ensure proper fiscal execution.
However, the approval faced harsh criticism from opposition senators. Leader Amarilla (PLRA) lamented the lack of data and reports on the status of the works and the level of contractor compliance, questioning whether the payments refer to completed or even existing works. Yolanda Paredes (Cruzada Nacional) and Rafael Filizzola (PDPP) also spoke against it. Filizzola stated that the law is unconstitutional "from start to finish" because it alters already established contractual conditions, and warned that Congress should not serve as a "backyard" to resolve the incompetence of bureaucrats.
The bill, which had been discussed in an extraordinary session of the Finance Committee before going to the floor, now goes to the Chamber of Deputies for review. Another agenda item, dealing with the modification and expansion of debt assignment (factoring), was not voted on after the session was suspended for lunch and not resumed.
Source: ABC Color