The Asunción Municipal Council on Wednesday blocked Mayor Luis Bello's (Colorado Party-cartista) attempt to postpone payment of overdue interest on municipal bonds. In a regular session, the plenary approved a Finance Committee opinion that returns the proposal from brokerage Valores Casa de Bolsa SA, representing the creditors, to the Executive without authorizing any deferral.
Councilor Álvaro Grau (PPQ) called the proposal "outrageous" and a financial "madness." The firm sought to charge 10% default interest on top of the 17% already paid by the municipality, raising the total rate to 27%. "It's a slap in the face to the citizens of Asunción who fund the city's coffers," Grau said.
The lawmaker suggested that if the firm refuses to accept payment under legal terms, the money be deposited with a notary and the dispute resolved in court. The Finance Committee opinion demands that the mayor's office strictly comply with the original bond issuance contract.
Bello's maneuver, presented at a press conference as a management victory, concealed conditions that would defer interest due in 2026 to 2027. The extension would hand the next mayor an accumulated debt of $32 million, which the opposition called an economic "time bomb."
Most of these bonds were issued under former Mayor Óscar "Nenecho" Rodríguez (Colorado Party-cartista). Intervention official Carlos Pereira documented that, through "terrible illegal practices," Nenecho diverted G. 512 billion from the G8 bonds, originally earmarked for public works, to current spending. Despite this, Rodríguez is seeking to return as a councilor in the upcoming internal elections.
Councilor Humberto Blasco (PLRA) called the brokerage's note "abusive and disrespectful." Fiorella Forestieri (PLRA), Ramón Ortíz (PLRA), Rosanna Rolón (Colorado Party-independent) and Juan José Arnold (Colorado Party-dissident) also opposed it. Data from the Asunción Stock Exchange and the Caja de Valores del Paraguay show that between May 2025 and February 2026, the municipality racked up eleven interest defaults totaling G. 130.369 billion.