Paraguay public debt reaches USD 22.2 billion

Paraguay's Ministry of Economy and Finance has reported a significant reduction in debt owed to road construction companies. The outstanding amount has decreased from USD 220 million to an estimated range between USD 140 million and USD 160 million.

Minister Óscar Lovera attributed previous delays to extended project execution timelines. While many road works are documented to last 36 months, the average duration under the Ministry of Public Works has reached 60 months, causing projects to overlap into subsequent budget cycles. To address this, the Ministry has established short-term commitments with construction firms to facilitate the resumption of works.

Separately, data from the Ministry indicates that Paraguay's total public debt reached USD 22.2 billion as of July, representing 34.8% of the country's GDP. This figure reflects a monthly increase of USD 261.7 million compared to June. The debt is primarily external, accounting for 82.8% of the total, with international bonds and multilateral loans being the largest components.