Paraguay's public debt totaled US$21.791 billion in May 2026, representing an increase of US$1.343 billion from the balance in December 2025, according to an official report from the Ministry of Economy and Finance (MEF).
The 6.5% increase over the five-month period was driven by exchange rate differences and the issuance of sovereign bonds on the international market in February. In an annual comparison, the debt grew by 14%, equivalent to an additional US$2.764 billion.
Despite the increase in absolute value, the debt-to-GDP ratio fell from 41% in December to 36.2% in May. This reduction is due to the appreciation of the guarani and an adjustment in Gross Domestic Product (GDP) projections, which rose from US$49.717 billion in 2025 to US$60.238 billion in May 2026.
Of the total debt, 83.8% (US$18.263 billion) is external, while 16.2% (US$3.428 billion) was contracted internally. The external debt is composed mainly of loans from multilateral and bilateral organizations (40.6%, US$8.840 billion) – including credits from the Inter-American Development Bank (IADB) and the Development Bank of Latin America and the Caribbean (CAF) – and by sovereign bond issuances (41.6%, US$9.067 billion).
The Central Administration accounts for 87.6% of the total (US$19.088 billion), while decentralized entities, such as departmental governorships and municipalities, represent 12% (US$2.240 billion) of the state's commitments.