Paraguay's Minister of Economy and Finance, Óscar Lovera, took part this Thursday in the opening of the 46th General Assembly of the Latin American Association of Development Financing Institutions (ALIDE) in Asunción. In his speech, he advocated for a regional financial system geared toward inclusion and the development of the population.
After the event, Lovera revealed that the Ministry of Economy and Finance (MEF) still plans to carry out approximately five sovereign bond issues this year, through the Central Bank of Paraguay (BCP). "We have five more issues scheduled during the year. We did the first issue. In April we placed about US$ 110 million," he said. He recalled that most of the placement authorized by the Budget Law was made at the beginning of the year, with the raising of US$ 1 billion in guaraníes on the international market. US$ 120 million programmed for issuance still remain, according to the minister.
On the ministry's website, the official calendar indicates only three additional placements, scheduled for July, October and November, but the document notes that the dates may be changed or expanded. Lovera highlighted the high demand for Paraguayan financial instruments on the international market.
The minister also warned about the effects of public debt on the fiscal scenario in the second half of the year. "Another effect we would have, which will be felt more or less from the second half onward, are the dollar debt maturities we have. There are certain commitments we need to meet and that must be financed with Treasury resources," he said. Exchange-rate pressure is already negatively impacting tax revenue, according to Lovera.
Regarding the factoring tool, which is to be used to settle debts with suppliers, the minister reiterated that the final version of the mechanism should be ready next week.