The head of Paraguay’s Ministry of Economy and Finance, Carlos Fernández Valdovinos, affirmed that Paraguay has fully covered its financing needs for 2025, allowing it to remain on the sidelines of the international market in a context of global uncertainty. He expressed this in an interview with LatinFinance, highlighting the country’s solid access to credit and investor confidence.
Last month, Paraguay successfully issued USD 1.2 billion in bonds in the US market, including a guaraní tranche. “For the second time, we issued local currency bonds in New York, with a highly competitive 10-year interest rate of 8.5%, which represents a great achievement,” he told the prestigious international financial news outlet.
Specifically, the country raised $600 million in guaraníes and another $600 million in US dollars, at a 6.65% interest rate for 30 years. Demand far exceeded expectations, reaching a total supply of $4.2 billion, demonstrating the market’s confidence in Paraguay’s economic strength. He emphasised, “When we went to the markets, we were trying to issue between $500 and $600 million in US dollar bonds, and we received an offer seven times greater.”
The government maintains a balanced financing strategy, combining domestic market issuances every three months with loans from multilateral organisations such as the Inter-American Development Bank and the International Monetary Fund.
In this regard, Paraguay could benefit from up to half of the USD 250 million available under the IMF’s resilience and sustainability mechanism this year.
The country’s access to financing has improved significantly, driven by its macroeconomic performance, which led to its first Investment Grade rating from Moody’s last year. This rating reinforces the country’s stability and reliability in international markets.
Regarding the economy, Minister Fernández Valdovinos projected 4% growth in 2025 for the third consecutive year, despite the impact of the drought on the agricultural sector.
He maintained that it is important to achieve less volatile growth and reduce dependence on weather conditions, he added, highlighting the growing resilience of the Paraguayan economy. With this approach, the country seeks to consolidate its economic development and reduce vulnerability to external factors, reports the Ministry of Economy and Finance.
