The Minister of Economy and Finance, Óscar Lovera, confirmed that a payment of US$80 million will be made this week to pharmaceutical suppliers as part of a plan to progressively reduce the government's debt to this sector. He recalled that US$100 million had already been paid in April.
The total debt to pharmaceutical companies is approximately US$1 billion. To address the outstanding balance, the government is developing a new financial instrument based on factoring — the assignment of receivables to banking institutions. The idea is that suppliers negotiate with banks to receive immediate liquidity, while the State assumes the payment commitment in installments.
“We expect to finalize this week, make the instrument available, and allow June for suppliers to submit proposals based on agreements they reach with financial institutions, mainly banks,” the minister said. He explained that the instrument will be considered a commitment of the National Treasury and will operate similarly to Treasury Bonds through the Central Bank of Paraguay (BCP).
Once the amount agreed between creditors and banks is defined, it will be possible to determine the remaining state debt balance. The goal is to extend payments to financial institutions over 36 months, as immediate settlement was deemed unfeasible.
Meanwhile, the Ministry of Public Works and Communications (MOPC) faces similar pressure in the construction sector. In April, US$85 million was paid for works, with projections for May between US$65 and 70 million. The total debt to construction companies fell from US$220 million to about US$190 million, but this figure is dynamic as new monthly certificates for ongoing works continue to be issued, according to Paul Sarubbi, president of CAVIALPA.
Sarubbi rejected the factoring mechanism if the State does not cover compensatory interest. “With construction margins, paying three years of bank interest is unfeasible. It’s not worth it,” he emphasized. He also argued that the MOPC’s 2026 budget of US$570 million is insufficient to cover ongoing works, which require around US$900 million, and demanded an urgent budget increase. “The solution is to pay on time. It makes no sense to finance macroeconomic figures with debt to suppliers who can no longer bear it,” he said.