Paraguay's public debt reached a new record in April 2026, hitting $21.781 billion, according to official data from the Ministry of Economy and Finance (MEF). The figure represents an increase of $1.333 billion in just four months, equivalent to 6.5% growth compared to December 2025, when indebtedness stood at $20.447 billion. In year-on-year terms, the jump is even steeper: the country now owes roughly $2.7 billion more than it did in April of last year.
The bulk of financial commitments remains concentrated in external debt, which accounts for more than 84% of the total. In the fourth month of the year, obligations to international creditors amounted to $18.325 billion, while domestic debt reached $3.455 billion. Among the factors driving the increase are the sovereign bond issuance carried out by the government in February on international markets, exchange rate fluctuations, and new financing operations aimed at covering budgetary needs and investment projects.
The Central Administration accounts for roughly 88% of all national public debt, with commitments exceeding $19.1 billion. Despite the continued growth, the Ministry of Economy maintains that current levels remain manageable and that the debt-to-GDP ratio stands at around 36.2%, below the levels recorded at the close of 2025. The government argues that Paraguay continues to be among the countries with the lowest debt burden in the region relative to the size of its economy.
Economists, however, warn that the steady rise in financial commitments is forcing an ever-larger share of resources to be earmarked for interest payments and amortizations, narrowing the fiscal space for future investments in infrastructure, health, education, and social programs. The debate over debt sustainability is thus returning to the center of the economic agenda at a time when the country is seeking to maintain growth without jeopardizing its public finances.