# Paraguay IPS drug supply and debt crisis

> Live situation record from CLSTR: https://clstr.news/situations/paraguay-ips-drug-supply-and-debt-crisis
> Updated: 2026-07-29T12:47:06.000Z. Sources: 6. Developments: 2.

In mid‑July, President Santiago Peña met with IPS director Isaías Fretes to address persistent drug shortages and criticism over alleged mismanagement at the social‑security agency. The discussion focused on improving medicine availability, speeding up appointment scheduling and reorganising internal procedures.

By the end of July, the IPS was portrayed as facing a structural financial shortfall. Advisor Carlos Pereira highlighted a large gap between contributions and obligations, urging legal and institutional reforms, debt restructuring and possible bond issuance. Fretes announced a plan to lengthen repayment terms for pharmaceutical suppliers from three to seven years, freeing roughly 105 000 million guaraníes monthly. The extra funds are intended to boost the monthly medicine budget and enable pharmacy shelves to be fully stocked within 15‑22 days.

## Timeline

### 2026-07-29: Paraguay's IPS moves to restructure debt and replenish medicines

Paraguay's IPS plans debt restructuring and extended supplier terms to free funds and fully restock medicines in 15‑22 days.

2 sources. https://clstr.news/cluster/paraguays-ips-moves-to-restructure-debt-and-replenish-medicines

### 2026-07-13: Paraguay President Santiago Peña meets IPS head Isaías Fretes to tackle drug shortages

Paraguayan President Santiago Peña met IPS chief Isaías Fretes to improve drug supply, speed up appointments and reform administration, amid Senate pressure over alleged IPS mismanagement.

5 sources. https://clstr.news/cluster/paraguay-president-santiago-pea-meets-ips-head-isaas-fretes-to-tackle-drug-shortages

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Cite as: Paraguay IPS drug supply and debt crisis. CLSTR, https://clstr.news/situations/paraguay-ips-drug-supply-and-debt-crisis