According to EconomiaVirtual – an online news service based in Paraguay , at the end of 2012 Paraguay had a foreign debt amounting to $2.249 billion dollars, which is a number of ticks below the $2.284 billion in debt registered for the 2011. In addition, foreign reserves held at the Central Bank of Paraguay were calculated at $4.994 billion, thus signifying that the South American republic has more than twice the amount of cash reserves to pay its foreign debt. Economic analyst Horacio Enciso edits EconomiaVirtual in Asunción.
The EconomiaVirtual article expressed the hope in a February 4 report that the government coming to power as a result of the presidential elections in April 2013 will be able to undertake needed investment in infrastructure, even if it means incurring further foreign debt. The article noted that to that end, the current government issued $500 million in debt securities last month.
Paraguay’s debt burden is much superior to other South American republics at this time.
Over the last decade, Paraguay’s debt situation has shown a historic change. In 2002, for instance, Paraguay’s foreign debt stood at $2.283 billion and its foreign reserves were a paltry $641.3 million.
See the chart below.
(Millions of US dollars)
Year Foreign debt Foreign reserves
2002 2,283 billion 641.3 million
2003 2,477.5 billion 983.4 million
2004 2,390.6 billion 1,168 billion
2005 2,271.1 billion 1,297.3 billion
2006 2,230 billion 1,701.7 billion
2007 2,205.3 billion 2,461.8 billion
2008 2,234.1 billion 2,864.1 billion
2009 2,236.8 billion 3,860.7 billion
2010 2,235.4 billion 4,168.2 billion
2011 2,284.7 billion 4,983.9 billion
2012 2,249.3 billion 4,994.4 billion
Source: Central Bank of Paraguay - Banco Central del Paraguay