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Villarrica: Mayor reveals millionaire inherited debt, analyzes loan for overdue salaries
๐Ÿ‡ต๐Ÿ‡พ Paraguay /Economy & Trade

Villarrica: Mayor reveals millionaire inherited debt, analyzes loan for overdue salaries

From ABC Color · () Spanish

Translated from Spanish, summarized and contextualized by DistantNews.

At a glance

News Named sources New plan
  • Villarrica's new mayor, Ovidio Cuevas, revealed a significant inherited debt from the previous administration.
  • The outgoing administration left substantial outstanding payments to suppliers and municipal employees.
  • Cuevas is exploring a bank loan to cover delayed salaries and ensure the continuity of municipal services.

Villarrica's newly inaugurated mayor, Ovidio Cuevas, has disclosed a substantial inherited debt, painting a grim financial picture left by the previous administration. Cuevas stated that upon taking office, his team discovered significant outstanding commitments to both suppliers and municipal workers, exceeding initial expectations.

Before entering, we already knew how the Municipality was going to be, but today we find ourselves with the surprise that the administrative situation was worse.

โ€” Ovidio CuevasThe new mayor expressed his shock at the severity of the financial situation inherited from the previous administration.

The situation is particularly dire regarding employee salaries, with some municipal departments reporting workers who have not received their pay for one to three months. Even members of the Municipal Council have reportedly gone without their stipends for three to four months. This financial strain is impacting the normal functioning of the municipality.

Cuevas explained that his administration is prioritizing the regularization of these obligations to maintain essential services and a functional relationship with suppliers. However, the exact total of the debt remains unclear as new pending invoices continue to surface daily.

I don't want to give an approximate amount because more invoices keep falling every day. During the week, the administrators will prepare a general report, and only then will we be able to announce the real figure.

โ€” Ovidio CuevasCuevas explained the difficulty in quantifying the total debt due to the continuous arrival of pending bills.

To address the immediate crisis of unpaid salaries, Mayor Cuevas and his technical team are actively considering the possibility of securing a bank loan. This financial measure is seen as crucial to ensuring that municipal employees receive their overdue wages and that the city's operations can continue without further disruption.

It is worrying the situation, but we will do everything possible to get some kind of loan from a bank and be able to settle those accounts, because people need to get paid their salary and the institution has to function.

โ€” Ovidio CuevasThe mayor outlined the plan to seek a bank loan to address the urgent issue of delayed salaries.
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.