Paraguay's capital market is undergoing transformation, with significant developments in both the Asunción Stock Exchange (BVA) and the banking system. While bank credit is growing, driven mainly by consumption, services, and mortgage lending, the local stock exchange has a distinct dynamic, dominated by debt securities at the expense of stocks.
BVA data show that bonds, or fixed-income securities, accounted for 96.1% of the volume traded through June 2026. Stocks, in turn, had a share of only 3.4%, and investment funds, 0.5%. Experts point out that this preference is rooted in cultural factors and the country's corporate structure.
According to economist Arnold Benítez, bond issuance is more attractive for companies because it allows them to raise resources without altering their shareholding structure. "The Paraguayan issuer prefers to issue the famous bond because that, even though you share your financial status publicly, gives you 100% control of the company as always," he stated. On the other hand, local investors also show a preference for fixed-income instruments, which offer predictable return rates and defined terms.
Simultaneously, the return of Treasury Bonds (public debt securities) to the BVA, after more than two years being issued only by the Central Bank of Paraguay, is seen as an important step. Economists like Rodrigo Callizo of ASU Capital believe that this measure broadens the investor base and brings more transparency to price formation. Arnold Benítez emphasizes that sovereign securities serve as a crucial reference for building an interest rate curve, which is fundamental for valuing the risk and cost of bond issuances by private companies.
Meanwhile, the banking system is on a different path. The credit portfolio reached G. 188 trillion in the first semester, with year-on-year growth of 3.6%. Loans for consumption grew 22.9%, those for services advanced 25.2%, and mortgage credit rose 25.3%. In contrast, traditional sectors like agriculture and wholesale trade registered declines of 11.5% and 5.2%, respectively.
This disparity illustrates an economy where financing is heavily concentrated in domestic demand, raising questions about support for long-term productive investment. For Benítez and other analysts, developing a more robust stock market is essential to complement bank credit and offer a financing alternative that allows companies to grow without increasing their debt.
The challenge, however, is considerable. Beyond companies' cultural resistance to opening their capital, there is a need to develop a base of local institutional investors, such as pension funds, that can invest with a long-term horizon. Financial education is also cited as a fundamental pillar so that more investors understand the benefits and risks of variable income. The future growth of Paraguay's capital market will depend on the ability to overcome these barriers and create a more diversified and deep ecosystem.