The Ministry of Economy and Finance (MEF) and representatives of state pharmaceutical suppliers met on Wednesday without reaching a final agreement on the public debt to the sector, which is approaching US$ 1 billion. Despite this, the government reaffirmed the payment of US$ 80 million scheduled for May and committed to disbursing an additional US$ 50 million in June and about US$ 70 million in July.
After the meeting with MEF Minister Óscar Lovera, the president of the Paraguayan Chamber of the Chemical Pharmaceutical Industry (Cifarma), Luis Ávila, and the spokesperson for the Chamber of Representatives and Importers of Pharmaceutical Products (Cripfa), Édgar Villalba, told the press that a working group had been agreed upon and that negotiations would continue next week.
Ávila explained that due to the high amount of the debt, it will not be possible to resolve it with a single financial mechanism. “There must be several tools to reach a mutual agreement,” he said. He added that a technical and legal team had already been formed to advance pending modifications related to the regulatory decree and a resolution linked to the credit assignment process (similar to factoring, a concept applied between private parties). “Now the technical and legal team is working with them, to see if next Wednesday we can make progress on the document,” he said.
In parallel, the financial team will meet on Tuesday to analyze new alternatives. So far, only credit assignment had been proposed, but the sector is seeking other mechanisms to reduce the debt without transferring higher financial costs to suppliers. Among the options under analysis are a possible issuance of bonds to cover pending commitments since 2023, budget reprogramming, and resource expansions.
Ávila highlighted that the government also showed openness to negotiate the impact of the financial interest generated by the debt. “We, as chambers, do not agree to pay a very high interest rate,” he said. He added that Minister Lovera expressed the Executive's concern about the financial cost of the operation. “We need more alternatives and more options so that the financing can work for everyone, so that they can pay and we can receive,” he said.
While partial payments are promised, the debt continues to grow, as new health products and services are provided each month. Cripfa spokesperson Édgar Villalba assured that suppliers continue to supply the Ministry of Public Health (MSPyBS) and the Social Security Institute (IPS). He clarified that deliveries depend on purchase orders issued by public institutions and denied that there is a general suspension of supply. “We have never stopped supplying. Suppliers continue to support the health system because we understand that the population cannot go without medicines or essential services,” he emphasized. Villalba reported that the monthly needs of the Ministry of Health represent between US$ 25 million and US$ 30 million, amounts that are added monthly to the debt accumulated over years.