The Central Bank of Paraguay has issued temporary support measures for the country’s productive sector in response to drought conditions linked to the La Niña weather phenomenon. The measures allow loans to be renewed, refinanced or restructured, including accrued interest, without negatively affecting producers’ credit classification, with the aim of easing access to better financing conditions during the adverse cycle. The package also requires an individualized financial analysis in higher-risk cases. That condition is intended to ensure the viability of the operations while protecting the stability of the financial system. The central bank said it will continue monitoring the development of the climate situation and its effects across economic sectors and may adopt additional measures if needed to mitigate further negative impacts.
Central Bank of Paraguay2025-01-27
Central Bank of Paraguay adopts temporary support measures allowing drought-hit producers to restructure loans without credit downgrades
The Central Bank of Paraguay has introduced temporary relief measures for the productive sector as drought linked to La Niña affects the economy. Producers will be able to renew, refinance or restructure loans, including accrued interest, without adverse effects on their credit classification. Higher-risk cases will require individualized financial analysis, and the central bank may take further measures if conditions worsen.