Technical staff from the Paraguayan Social Security Institute (IPS) met with lawmakers on Monday to discuss potential reforms to the bill declaring an emergency at the institution, which is facing a shortage of medicines and billion-dollar debts. One of the alternatives under debate is the issuance of debt securities by the IPS itself to alleviate its financial situation.
Deputy César Cerini, president of the Accounts and Control Commission, stated that issuing bonds would allow the IPS to meet its short-term commitments with lower interest costs and longer terms. Currently, the agency's debt with pharmaceutical companies reaches $384 million.
Another proposal under analysis is "debt assignment," where third parties would buy the credits from medicine suppliers to later be paid by the State. Meanwhile, associations of retirees suggest the government issue sovereign bonds to settle the $800 million it has owed to the IPS since 2015.
The emergency bill was approved in the Chamber of Deputies in May without prior debate, generating criticism about its effectiveness. Now, deputies are acting as intermediaries to suggest changes in the Senate, as they can no longer directly amend the original text.