Paraguay’s Credit Behavior: 20% Growth and Sustainable Bonds

In a recent analysis of the behavior of credit in Paraguay, Stella Guillén, president of the Financial Development Agency (AFD), revealed a 20% growth in the credit portfolio until October 2023, compared to the same period of the year. former.

According to the head of the entity, this dynamism is reflected in more than USD 230 million approved, with mortgage loans being the protagonists, occupying first place.

In the housing sector, AFD has disbursed more than USD 100 million, with more than 2,300 credit operations. The “First Home” product leads with USD 56 million; followed by “Mi Casa”, with USD 46 million.

In addition, a notable increase in the approval of loans to small and medium-sized enterprises (SMEs) stands out, with the forestry sector being the second in terms of approvals, marking a significant movement compared to previous years.

Guillén expressed optimism about economic consolidation, highlighting improvements in the confidence indices published by the Central Bank of Paraguay (BCP). He stressed the importance of positive expectations and pointed out that, according to the perspectives of international organizations, Paraguay is among the countries with the greatest dynamism in the region, reflected in the credits managed by AFD.

Regarding interest rates, he indicated that they seek to keep them as low as possible, despite increases at the international level. The president valued this effort that seeks to promote investment at the country level.

With respect to the goals established at the beginning of the year, AFD is close to reaching USD 300 million in credit approvals by 2023, despite a challenging macroeconomic context.

Sustainable bond issuance

Stella Guillén also announced an important milestone for the stock market; This is the first sustainable bond issue scheduled for the first half of December.

He assured that the expectation is very positive, supported by the solid demand of investors interested in participating in these bonds, thanks to the recognized financial solvency of the AFD, rated triple AAA in the market.

This initiative highlights AFD’s commitment to sustainable financial practices and its key role in the country’s economic development, he concluded.