Paraguay seeks approval for more debt

Paraguay seeks approval for more debt

Debt Bonds Corporate & Sovereign Strategy Loans Paraguay Latin America Coronavirus

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Paraguay is seeking congressional approval to raise up to $292 million in financing for housing and social welfare projects and its ongoing response to the COVID-19 pandemic, the government said.

The bill calls for selling bonds in the local or international markets or taking out loans from international lenders, the Paraguayan Finance Ministry said in a statement late on Thursday, without suggesting when the bill could go to a vote.

The plans come only weeks after Deputy Economy Minister Carmen Marín said steps would be taken to reduce the public debt, which she described as "unsustainable." Paraguay's ratio of public debt-to-GDP rose to 30.9% in June from an average of 22.7% in 2019 and 19.7% in 2018, according to ministry data.

In the international markets, Paraguay added $450 million to its 5.4% 2050 notes in January and then went on to sell $1 billion in 10-year notes at 4.95% in April. Both of the deals were heavily oversubscribed.