The Paraguayan government's debt to construction companies has again reached US$300 million, according to José Luis Heisecke, president of the Paraguayan Chamber of Construction (Capaco). He stated that the amount remained the same even after payments made in April and May.
Heisecke criticized the factoring system proposed by the Ministry of Economy and Finance (MEF) as an alternative to provide liquidity to the sector. According to him, the current regulation is unfeasible because financial institutions charge between 21% and 24% interest at the time of the transaction. "If this tool is not used, we will stop collecting, and everyone knows how that will end. We hope that does not happen," he told Monumental 1080AM radio.
Capaco and the Paraguayan Road Chamber (Cavialpa) rejected the factoring proposal, arguing that the mechanism shifts the financial cost of government delays directly onto the private sector. The organizations say the imposed conditions make the system inapplicable.
Heisecke ruled out raising taxes as a solution, arguing that it does not guarantee greater state efficiency. "We have to improve the quality of spending, and that leads to a complex battle. Either taxes are raised or the fiscal ceiling is increased, but who guarantees better public spending?" he questioned. He recalled that Paraguay ranks among the lowest in infrastructure quality in the region.
For economist Sergio Sapena, delays in payments to government suppliers are linked to an MEF strategy to keep the fiscal deficit within the 1.5% of GDP commitment. He considered the factoring regulation unfair to companies and suggested raising the fiscal ceiling.