Paraguay proposes law to expand MSME credit access and combat usury

In Paraguay, Senator Luis Pettengill is proposing legislation to facilitate credit access for micro, small, and medium enterprises (MSMEs) and combat usury. During a Senate Industry and Commerce Commission meeting, the National Entrepreneurship and MSME Plan 2026-2031 was analyzed.

Pettengill noted that many small businesses struggle to meet formal banking requirements, forcing them to rely on high-interest predatory loans. The Ministry of Industry and Commerce has proposed 13 reforms, including new credit tools and alternative guarantees, to help these businesses integrate into the formal economy. A law to advance these measures is expected to be introduced in Parliament before the end of the year.