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Government and Pharmaceutical Companies Remain Without Agreement on Nearly US$ 1 Billion Debt

Paraguay's Ministry of Economy and Finance (MEF) and representatives of pharmaceutical suppliers have not reached a final agreement on the public debt to the sector, estimated at nearly US$ 1 billion. In a meeting on Wednesday, the government confirmed partial payments of US$ 80 million in May, US$ 50 million in June, and US$ 70 million in July, but negotiations will continue next week.

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MEF and DNIT Reassess Fiscal Projections and May Ease Deficit Cap in 2026

The Ministry of Economy and Finance (MEF) and the National Directorate of Tax Revenue (DNIT) have begun new revenue and expenditure estimates to decide whether to raise the fiscal deficit cap, currently set at 1.5% of GDP. The move comes after first-quarter revenue fell short of expectations, while the accumulated deficit has already reached 0.8% of GDP and the annualized figure stands at 2.2%.

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