Consumer credit in Paraguay recorded an annual growth of 42% through May, reaching a balance of G. 35.52 billion, according to data from the Central Bank of Paraguay (BCP). This segment represents nearly 20% of the total loan portfolio of the banking system and is currently the category receiving the most funding from banks.
Five institutions hold 76% of the total consumer credit volume: Banco Nacional de Fomento (G. 8.35 billion), Itaú (G. 8.13 billion), Familiar (G. 5.02 billion), Ueno (G. 3.26 billion), and Sudameris (G. 2.14 billion).
Within this sector, the credit card balance is also rising rapidly, with a 30% increase in the period, totaling G. 6.54 billion. The most concerning growth, however, is occurring in the lower credit limits (up to G. 3 million), which rose by 50%, indicating that part of the population is using revolving credit to cover basic expenses.
The International Monetary Fund (IMF) has issued warnings about the rapid expansion of consumer credit, recommending rigorous monitoring and the preparation of macroprudential tools to contain potential risks of over-indebtedness, especially among lower-income families.