The Social Security Institute (IPS) is seeking exceptional legal mechanisms to recover a debt of approximately $711 million accumulated by over 2,000 delinquent private companies. The information was presented by the institution's advisor Carlos Pereira, who also served as a former board member of the agency.
Pereira noted that public debate often focuses on the pension system's financial difficulties, but little is said about the amounts receivable. Beyond the private sector debt, he mentioned that the Paraguayan state has a historical debt with IPS dating back to 1943 totaling about $780 million.
The advisor criticized the ineffectiveness of traditional measures like judicial injunctions, which end up blocking companies already in critical financial situations without IPS being able to recover the funds. He argued that this practice harms both debtors, whose recovery chances diminish, and the institution itself.
As a solution, Pereira proposed creating a "guarantee trust." Under this mechanism, public banks could lend to struggling companies, which would use the funds to settle their debts with IPS. The future service contract with the social security system would serve as collateral for the loan, allowing companies to regularize their situation and maintain their job-generating activities.
Parallel to the credit recovery efforts, IPS faces strong pressure on its healthcare budget. Pereira revealed that about 80% of funds allocated for medications are consumed by oncology drugs, leaving limited margin for other needs. This is compounded by acquisitions through legal actions (amparos), which he said require regulatory review to incorporate technical and budgetary criteria.
In this context, he positively mentioned a proposal under debate in the Senate to create an oncology drug bank, since the National Solidarity Resources Fund (Fonares) has limited resources for growing demand. In supply matters, the administration of president Isaías Fretes has reportedly advanced negotiations with laboratories to normalize provision of critical supplies, with plans to cover approximately 183 essential products.
Pereira stated that the current administration inherited an institution with serious structural problems, particularly in healthcare, and is now working simultaneously on financial strengthening and reorganization of the health system, maintaining talks with banking entities to access financial alternatives.