The most pressing issue, according to the finance minister, Alcides Jiménez, is a US$5.9m payment due to Chinatrust, from Taiwan. If this is not made, the country could lose reserves. This was one of the conditions of the US$400m loan. The country has US$780m in reserves.
Another urgent payment is US$9m due to the World Bank. If this is not paid by the 30 July, US$23m in loans to the education ministry will not come through. The government had hoped that cash generated by the binational companies (Itaipú and Yacyretá) would be used to make the payments. Despite organising this more than a month ago, none of the money has been paid.
Guaraní: Despite the prospect of bankruptcy, the guaraní has appreciated by 18% this year, in line with the rise of the Argentine peso and the Real. The central bank says that it will not intervene because it does not want to inflate the money supply.
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