Paraguay Senate to Consider Bill Expanding State Supplier Financing

The Paraguayan Senate is scheduled to review a bill aimed at expanding financing options for state suppliers, a move intended to address a substantial state debt. This legislative proposal has faced repeated delays in Congress, prompting increased pressure from private companies seeking payment.

The bill seeks to amend Article 279 of Law No. 7609/25, which governs the 2026 General Budget of the Nation. It specifically targets the payment of debts owed to suppliers by the Ministry of Public Health and Social Welfare (Mspybs) and the Ministry of Public Works and Communications (MOPC). The state owes over $1 billion to the health ministry's suppliers and more than $350 million to those of public works.

Companies like the Chamber of Importers of Pharmaceutical Products (Cripfa) have urged authorities to expedite the bill's treatment. The proposed legislation, which has already passed the Chamber of Deputies, would allow the Ministry of Health to include obligations arising from the provision of essential goods and services, not just medication contracts. If passed by the Senate and signed by the executive, it would enable suppliers to access financial mechanisms for early payment of state-recognized credits. The Ministry of Economy and Finance would need to authorize each assignment, and the state would cover associated financial costs like commissions and interest.