Paraguay's IPS moves to restructure debt and replenish medicines

Advisor Carlos Pereira warned that the Instituto de Previsión Social (IPS) faces a structural financial crisis under the administration of Isaías Fretes. He said the current model shows a severe gap between contributions and long‑term obligations and called for immediate legal and institutional reforms, debt restructuring, and the possible issuance of bonds to secure financing.

Fretes outlined a plan to extend the repayment period for pharmaceutical suppliers from three to seven years, freeing roughly 105 000 million guaraníes each month. The added resources will increase the monthly budget for medicines, allowing the IPS to fully stock pharmacy shelves within 15‑22 days.