The financial system, made up of four companies, is facing a challenging scenario, according to the latest data from the Central Bank of Paraguay (BCP). In April 2026, the delinquency rate hit 8.1%, the highest level ever recorded in this segment, surpassing the historical average of 5.9%.
This rise in delinquency stems from the accelerated growth of overdue loans, which surged 45.7% year-on-year, well above the overall credit portfolio expansion of 14.9%, reaching a balance of 4.9 trillion guaraníes (approximately US$820 million). This trend pushed the default rate up by 1.7 percentage points compared to the previous year.
Despite the increase in delinquency, the performing portfolio — that is, loans in good standing — continues to account for the bulk of the business, with a balance of 4.5 trillion guaraníes (US$750 million), representing 92% of the total and growing 12.8% year-on-year.
When broken down by currency, loans in guaraníes stand out with an annual expansion of 18.5%, while loans in US dollars grew 35.7%. However, when converted into local currency, the nominal growth in dollars is just 1.3%, due to exchange rate fluctuations.
The financial sector will need to adjust its risk policies and credit analysis in the coming months to control the escalation of delinquency without undermining consumer lending and microenterprise financing, which are the main drivers of this segment.
Regarding credit cards, there has been a moderation in the issuance of new cards, although the financed volume continues to grow rapidly, driven primarily by lower-income consumers. In April, the number of active cards reached 2.56 million, a 13.4% increase year-on-year, indicating a stabilization in the pace of issuance.
Despite the more controlled issuance, the total credit card debt balance reached 6.53 trillion guaraníes (around US$1.1 billion), a 33.7% jump in one year. The growth was driven mainly by basic consumer credit lines, particularly those of up to 3 million guaraníes, which grew 49.7% over the period. Lines above 10 million also grew 28.8%, maintaining the largest influence on the increase in the overall balance.
The rapid growth in the financial balance has brought an increase in overall card delinquency, which closed at 5.2%, up 0.6 percentage points year-on-year. The most critical situation is among lower-middle-income users, where credit lines between 3 and 5 million guaraníes posted a delinquency rate of 7.5%, more than two percentage points above the system average.