Paraguay sketches out potential 2019 debt plans

Paraguay sketches out potential 2019 debt plans

Bonds Capital Markets Corporate & Sovereign Strategy Economy & Policy Paraguay

Paraguay’s new government may seek congressional approval to issue up to $1bn in debt across both domestic and international markets next year.

In an interview with LatinFinance, incoming Finance Minister Benigno López said the new government is looking at the possibility of asking Congress to approve a broad bond sale program for the entire five-year term of President-elect Mario Abdo Benitez, who is set to take office on August 15.

Under current law, the government must outline its debt issuance plans in the annual budget and submit a request to Congress to tap global debt markets.

“We are exploring the possibility of one single authorization for the whole term,” Lopez said. “We’re in the process of looking at what is the best approach. This could give us more flexibility, particularly in the current market environment.”

Paraguay last tapped global bond markets in March, selling $530 in 30-year bonds.

A fuller version of the interview will be published in the upcoming edition of LatinFinance magazine.