Paraguay: bonds, indices, credit ratings

The Republic of Paraguay is a country in South America, bordered by Argentina to the south and southwest, Brazil to the east and northeast, and Bolivia to the northwest. The country’s area is 406 752 square kilometers. The country’s capital is Asuncion. The currency unit is the Paraguayan Guarani (PYG). The main sectors of the country's economy are manufacturing industry, trade and electricity supply industry.

Securities are traded on the Bolsa de Valores y Productos de Asuncion (BVPASA). Paraguayan laws provide two types of sovereign securities: Bonds with a maturity of more than one year and Treasury Bills placed for a period not exceeding 12 months. Currently, government sector of Paraguay is represented only by Bonds. Government securities may be placed in four ways: through the Central Bank of Paraguay, acting as the Government’s financial agent; on the stock exchange; through authorized financial agents; and through auctions organized by the Ministry of Finance of Paraguay. The public sector also includes short-term securities issued by the Central Bank of Paraguay; using them as an instrument to absorb excess liquidity, municipal bonds and AFD bonds.

The private sector is represented by corporate bonds; investment bonds (issued by production cooperatives); subordinated bonds (securities placed by financial institutions with a minimum maturity term of 4 years, convertible into ordinary shares, if the issuer meets minimum capital requirements); short-term stock exchange bonds (instruments placed at a discount and with a maturity of 90 to 270 days); financial bonds (securities placed by financial institutions with a minimum maturity term of 541 days), as well as debt securities issued by trusts (Fideicomiso). Securities are placed by brokerage houses (Casas de Bolsa) authorized to operate on the stock exchange. The capital is Asuncion. Official language – Spanish and Guarani Government - Presidential republic.