The data is part of a report by the Ministry of Finance as of February 2022 on the loans in execution which details, among other points, the credit portfolio of the financial organizations with our country, the amount granted, the disbursements made, the percentage of execution and the balance to be disbursed.
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The report reveals that the total amount of this part of the debt amounts to more than US$ 4,794 million, Of this, US$ 2,233 million have already been disbursed, which represents an execution of 46.6%, and US$ 2,561 million remain to be disbursed within the periods established for each program.
95.8% of the loans come from multilateral organizations and the remaining 4.1%, from foreign government financial institutions or also known as official bilateral organizations.
Credits granted by Multilaterals
Regarding the group of entities multilateralCAF Development Bank of Latin America has the largest loan portfolio with the country for a total of US$1,904 million, comprising seven contracts with the Ministry of Public Works and Communications (MOPC) and four with the National Electricity Administration (ANDE). ).
In addition, a loan of US$300 million is in the process of being negotiated with CAF, of which US$100 million will be allocated to fuel subsidy foreseen through the bill with half sanction of the Chamber of Senators; US$100 million will go to the Ministry of Public Health and US$100 million to the MOPC, both for programs approved in the current budget law.
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In second place is the Inter-American Development Bank (IDB), which has a credit portfolio of US$1.8 billion, made up of 29 projects executed by various entities, including mainly the MOPC, ANDE, the Ministry of Industry and Commerce ( MIC).
The government recently authorized the Ministry of Finance to negotiate with the IDB a new loan of US$ 200 million for the “Program to Strengthen Public Policy and Fiscal Management to Address the Health and Economic Crisis caused by Covid-19 in Paraguay II”, to cover budgeted programs.
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Fonplata, for its part, has a loan portfolio of US$338.5 million, with five programs executed by MOPC and ANDE; while the World Bank (WB) portfolio with the country amounts to US$335 million, with four projects executed by the MOPC, the Ministry of Agriculture and Livestock (MAG) and Public Health.
The Executive also recently authorized the Treasury to negotiate with the World Bank a new loan for US$ 200 million as part of the “Public Sector Development Policy Support Loan (DPL)”, in order to also cover budgeted expenses.
Credits granted by the bilateral
There are also loans, to a lesser extent, from the following multilateral entities: the International Fund for Agricultural Development (IFAD), the OPEC Fund for International Development (OFID), the European Investment Bank (EIB); as well as official bilateral entities such as: the Official Credit Institute (ICO) and the Japan International Cooperation Agency (JICA).
Running programs are part contracts signed since 2008 onwards until 2021, they have different levels of execution, including some that have not yet started after their approval at the end of last year.
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In addition to loans from international financial organizations, the State has debts for the issuance of sovereign bonds and bonds in the local market, as well as for the execution of investment projects within the framework of the provisions of Law No. 5074/13 , known as “turnkey”.
As of February, precisely, the balance of the total public debt amounted to US$ 13,901.6 million, which is equivalent to 32.9% of the gross domestic product (GDP). Of this total, US$12,406 million corresponds to the central administration and US$1,495.6 million to decentralized entities.
Interest payments grew 16%
Regarding the payment of interest, the Financial Situation report for the month of March released by the Treasury last week indicates that the amount paid in the first quarter of the year to creditors increased almost 16%.
The referred report indicates that in the first quarter of the year G. 828,800 million (US$ 118.5 million at the budgeted exchange rate) were paid as interest and in the same period of the current fiscal year the amount increased to G. 960,500 million (US$ $137.3 million), which implies an increase of 15.9%.
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The interest is paid to international financial organizations and financial institutions of foreign governments, as well as to the holders of Treasury bonds, as part of the commitments assumed with the contracting of loans or the issuance of sovereign or local bonds.
The Treasury report indicates that this year there is a budget for the interest payment more than G. 4.1 billion (US$ 590.5 million), which represents an increase of 21.3% compared to last year.
Interest payments are increasing to the extent that the public debt increases, which in recent years registered a significant rise after the emergency loans obtained by the Treasury, mainly through the issuance of sovereign bonds.