Retirees Pressure Congress for Financial Bailout of Social Security Institute

The National Union of Retirees of Paraguay is pressuring Congress to approve a bill that would declare an emergency in the IPS health fund to release extraordinary funding and address the critical shortage of medicines.

Retirees Pressure Congress for Financial Bailout of Social Security Institute
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The National Union of Retirees of Paraguay (UNJP) has publicly entered the debate over the financial crisis at the Social Security Institute (IPS), pressuring Congress to approve a bill that would declare the institute's Sickness-Maternity Fund to be in a state of emergency. The proposal aims to establish extraordinary financing mechanisms to address the critical shortage of medicines, the purchase of medical supplies, and the strengthening of health services.

The leader of the UNJP, Gustavo Canatta, stated that the bill represents the most immediate alternative to the healthcare crisis affecting thousands of beneficiaries. The initiative proposes that the state settle part of its historic debt with the IPS, estimated at around $800 million, through financial instruments managed by the Ministry of Economy. An amount of approximately $304 million would be allocated exclusively to the health sector.

Canatta explained that these resources would urgently address the shortage of medicines, supplies, and equipment, providing financial breathing room while the administration led by Isaías Fretes moves forward with an institutional reorganization process. He expressed support for Fretes's management and said the proposal was studied in conjunction with IPS authorities.

The organization also advocates for the obtained funds to be strictly controlled and used only for health sector acquisitions, preventing any diversion that could affect pension funds. The UNJP further demands to participate in meetings where the future of the initiative is discussed, arguing that retirees and beneficiaries should have a voice in decisions regarding the use of social security resources.

Beyond the financial bailout, Canatta argues that the emergency declaration should be accompanied by structural changes, such as a reform of the IPS Organic Charter to strengthen beneficiary participation in the institution's management and improve control mechanisms. The bill continues to be analyzed by Senate committees, under increasing pressure from organizations linked to the institute.

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Updated: Jul 20, 2026, 1:30 AM