A technical mission from the International Monetary Fund (IMF) has warned of the need to closely monitor the rapid growth of consumer credit in Paraguay, although it assessed the country's banking system as solid and resilient.
The findings are part of the annual Article IV review of the IMF's founding agreement, conducted between June 15 and 26. The mission stated that systemic risk appears controlled, but the sustained and accelerated expansion of consumer loans requires vigilance and readiness to act at any sign of weakening in lending standards.
Among the recommendations, the IMF suggests developing macroprudential tools focused on borrowers, such as limits on the debt service-to-income ratio, to promote sustainable household debt and contain vulnerabilities.
The report also highlights the importance of continuing to strengthen the fight against money laundering and terrorist financing, particularly through the approval of an updated National Risk Assessment and the correction of identified deficiencies.
In terms of financial development, the IMF recommends deepening local capital markets, broadening the investor base, and gradually increasing the issuance of sovereign bonds in the domestic market, coordinated by the Central Bank of Paraguay (BCP), to avoid maturity overlaps. The creation of a reliable local currency yield curve would facilitate the pricing of long-term instruments, such as mortgages, according to the fund.
The organization praised the country's inflation targeting regime and the anchoring of expectations at the 3.5% target, even during the energy crisis. It reinforced that the flexible exchange rate should continue to act as a buffer against external shocks, with currency interventions restricted to cases of market disorder.
The latest data from the BCP corroborates the trend highlighted by the IMF. Total credit showed year-on-year growth of 17.1% in March, driven mainly by household consumer loans. In the first four months of 2026, consumer credit in guaraní grew 24.24% compared to the same period in 2025, reaching G 34 trillion.