Paraguay's Peña touts economic gains amid supplier payment disputes

At the Paraguay Business Fair 2026, President Santiago Peña asserted that his nearly three-year administration has improved all economic and social indicators. He pointed to economic growth, reduced poverty, and increased formal employment as successes.

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Today we can see that there is not a single economic and social indicator that has not improved in Paraguay in these three years.

However, Peña admitted the government has accumulated debts with suppliers. He attributed payment delays to a drop in tax revenue last year, caused by lower customs collections and the guaraní's appreciation against the dollar. "We have felt it in the delays with state suppliers," he acknowledged, while assuring that the government is committed to honoring its obligations. He noted that approximately $250 million in supplier debt was reduced in April and May.

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We have felt it in the delays with state suppliers.

The president's optimistic remarks contrasted with growing complaints from sectors holding state contracts, especially construction and pharmaceutical companies. The Paraguayan Chamber of Construction (Capaco) has strongly rejected a Ministry of Economy and Finance resolution aimed at settling pending commitments. Capaco argues the proposal forces private companies to finance the state's delays and bear the associated interest costs. "We are going to finance the Paraguayan state and pay the interest for financing the government. It makes no sense," stated the head of the chamber, which later reaffirmed its rejection of the official initiative.

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We are going to finance the Paraguayan state and pay the interest for financing the government. It makes no sense.