Paraguay deputies stall bill to pay road contractors' interest

A legislative push in Paraguay to authorize interest payments on work certificates for state contractors, a matter involving around US$100 million, is teetering on the brink of collapse in the Chamber of Deputies. Disagreements among members of the ruling party have stalled the bill, which had previously secured passage in the Senate.

Cristina Villalba, president of the Budget Commission, placed the bill on the agenda for a recent session. However, its approval remains uncertain as several ruling party lawmakers, whose votes are crucial, have voiced reservations. These lawmakers are hesitant to rush the approval of a project with substantial financial stakes.

“

It's a topic that requires significant analysis, and we want to do it responsibly. It's not just any amount of money. It's a lot of money, so I, at least, would like, as a bloc, to take sufficient time and not simply approve it without much analysis, without questioning the substance of the matter.

Hugo Meza, the first vice president of the Chamber of Deputies and an ally of the ruling party, acknowledged the existing divergences and doubts. He emphasized the need for responsible and thorough analysis, stating, "It's a topic that requires significant analysis, and we want to do it responsibly. It's not just any amount of money. It's a lot of money, so I, at least, would like, as a bloc, to take sufficient time and not simply approve it without much analysis, without questioning the substance of the matter."

The eight votes from the officialist ANR-B bloc are essential for the ruling party to achieve a majority and pass the bill. Given that the preceding Monday was a holiday, hindering in-depth analysis within the bloc, lawmakers are considering postponing the vote further. Meza even suggested summoning the Minister of Economy and Finance, Óscar Lovera, to discuss the project, noting that it was initially proposed by the former minister, Carlos Fernández Valdovinos, and that current conditions might have changed. He also raised the question of whether the proposed mechanism, factoring, would satisfy the contractors, as they have reportedly not been accepting it.

“

Probably yes (we will ask to summon him), we understand the scope of what this law would mean, and we also need to see if this satisfies the vialeras, because you know that they are ultimately not accepting the factoring.