IMF recommends financial reforms for Paraguay to end supplier payment delays

The International Monetary Fund (IMF) has presented Paraguay with a series of recommendations aimed at strengthening public finances and resolving persistent delays in payments to state suppliers. The IMF's technical mission, which concluded its review on June 26th, emphasized the need for greater transparency and improved fiscal management.

Among the core recommendations are maintaining transparency in the registration of payments, ensuring better alignment between the national budget and financial planning, and reinforcing controls over government spending. The IMF also stressed the importance of publicly disclosing a strategy to clear internal arrears and enhance fiscal policy credibility, which has been hard-won.

The report highlighted that the timely resolution of these payment delays, coupled with transparent reporting in fiscal statistics, would bolster the credibility of Paraguay's fiscal policy. The IMF team expressed willingness to support the authorities' efforts through capacity development initiatives.

Regarding the fiscal deficit, the IMF projects that it will not reach the level outlined in the convergence plan. Furthermore, the organization indicated that a plan might be in place to extend the fiscal adjustment period until 2028. The mission also urged the continued implementation and full application of the Integrated System for the Management of Goods and Services (SIGEBYS) and its interoperability with other government systems to improve expenditure control and transparency.