The Central Bank of Paraguay (BCP) reported in its May 2026 Financial Stability Report (IEF) that total credit in the country grew 17.1% year-on-year through March, reflecting sustained momentum in the financial sector. Jazmín Quiñónez, head of the BCP's Financial Stability Division, noted that household credit saw the strongest expansion, driven primarily by consumption.
Corporate credit also posted growth, underpinned by loans directed to the services, agriculture, wholesale trade, and industry sectors. When broken down by currency, foreign-currency loans grew 21.4% year-on-year, while domestic-currency lending rose 13.9%, driven by consumption, services, wholesale trade, and housing.
Specifically, household credit recorded a 24.7% year-on-year increase, while corporate credit grew 16.4%. This positive performance takes place against a backdrop of healthy economic activity and employment, with consumer lending rates declining since the last report, as well as a process of greater financial inclusion—all factors that contributed to the stronger momentum in household credit, Quiñónez explained.
The financial system's overall non-performing loan ratio stood at 2.5% through March, with provisions fully covering credit risk. Favorable growth prospects for 2026 support expectations of adequate loan repayment performance.