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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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Senate Approves Payment of Late Interest to Construction Companies Amid Unconstitutionality Criticism

The Paraguayan Senate approved, amid heated debate, a bill authorizing the Ministry of Economy and Finance (MEF) to pay about US$100 million in late interest on unpaid construction certificates. The measure, which now goes to the Chamber of Deputies, was criticized by opposition lawmakers, who consider it unconstitutional and question the lack of transparency regarding the works.

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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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