DistantNews
Support us
Paraguayan Deputies Postpone Bill on Interest Payments to Contractors
🇵🇾 Paraguay /Economy & Trade

Paraguayan Deputies Postpone Bill on Interest Payments to Contractors

From ABC Color · () Spanish

Translated from Spanish, summarized and contextualized by DistantNews.

At a glance

News Sources not specified New plan
  • Paraguay's Chamber of Deputies has postponed a bill authorizing interest payments to construction companies for 15 days.
  • Legislators criticized the bill as a "violation of the legal system" and expressed concerns about its legality and potential impact on legal certainty.
  • The proposed law aims to regularize accumulated state debts to contractors, but critics argue it lacks clear limits and could lead to unchecked public debt.

The Chamber of Deputies in Paraguay has decided to postpone the study of a bill that would authorize interest payments to construction companies for 15 days. Legislators expressed significant concerns, labeling the proposed legislation an "assault on the legal system" of the country.

In this project, it is intended to nullify agreements made in public works contracts without the consent of the contractors.

— Deputy Roberto GonzálezExpressing concern that the bill would unilaterally alter contract terms.

The bill, which has already received preliminary approval from the Senate, seeks to allow the Ministry of Public Works and Communications (MOPC) to recognize and pay overdue interest on certificates for public works projects to contractors, consultants, and suppliers. However, several deputies raised doubts about its legality and called for a more in-depth analysis.

Deputy Roberto González argued that the project presents legal issues and would alter the terms of public works contracts without the consent of the parties involved, which he considers an "assault on the legal system" and a risk to the country's legal certainty. "In this project, it is intended to nullify agreements made in public works contracts without the consent of the contractors," he stated.

I understand the concern and the importance of the project, but also the need to go about transparent the debts that are carried over from the previous period.

— Deputy Miguel del PuertoAcknowledging concerns while advocating for transparency and debt regularization.

Conversely, Deputy Miguel del Puerto proposed a 15-day postponement as a compromise, acknowledging the concerns but also emphasizing the need to "transparent the accumulated debts from the previous period" and move towards their regularization. This motion was ultimately approved by the full chamber. Other deputies, like Rocío Vallejo and Miguel Martínez, echoed concerns about the lack of clear limits for bond issuance and the potential for granting a "blank check" for public debt without thorough analysis.

I am in favor of debts being paid, but we cannot be giving blank checks like this project in its original version.

— Deputy Rocío VallejoStating support for paying debts but cautioning against unchecked financial commitments.
DistantNews Editorial

Originally published by ABC Color in Spanish. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

More Stories

From Our Blog