Paraguay has cash reserves to pay foreign debt twice

Central Bank of Paraguay

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

Spero News editor Martin Barillas is a former US diplomat, who also worked as a democracy advocate and election observer in Latin America. He is also a freelance translator.


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