BUENOS AIRES Dec 15 Paraguay's Congress reduced
the approved amount of debt issuance allowed in 2017 in the
budget bill it passed on Thursday, a blow to President Horacio
The government has warned it could veto the budget proposal
after it was altered by the Senate in what would be an
unprecedented move in the tiny South American nation.
Senators reduced the amount of bonds allowed next year to
$349 million from $558 million proposed by the government, which
is counting on issuing debt abroad to build infrastructure.
Paraguay has emitted $1.88 billion in international bonds
under Cartes, a former business magnate of the center-right
"We can't continue indebting our country to levels that our
grandchildren will continue to pay," said Senator Silvio Ovelar,
a dissident member of the Colorado Party.
The budget expects economic growth of 3.8 percent in 2017,
down form 4 percent in 2016, with inflation of 4.5 percent.
(Reporting by Daniela Desantis and Mariel Cristaldo; Writing by
Caroline Stauffer; Editing by Bernard Orr)