Paraguay
Asunción Paid Only Part of What Was Promised to Bondholders and Still Has Overdue Debt
Luis Bello’s administration disbursed G. 22,448 million, compared with the G. 41,101 million it had committed to pay in September. According to ABC Color, the payment sought to defuse possible legal action by creditors.
The Municipality of Asunción made a partial payment to bondholders and fell short of the amount it had committed to pay in September. According to ABC Color, Mayor Luis Bello’s administration paid G. 22,448 million, when the promise was to reach G. 41,101 million by September 15.
According to that outlet, the transfer was made in the framework of the Bondholders’ Assembly of the municipality and aimed to contain possible measures and legal claims in the face of a new default.
Confirmation of the payment was communicated by the Caja de Valores del Paraguay to the Superintendency of Securities of the Central Bank of Paraguay, always according to ABC Color. The breakdown indicated that G. 15,123 million were allocated to G8 bonds with coupons overdue since November 2025, while G. 7,325 million partially covered arrears on G7 bonds accumulated since February 2026.
ABC Color noted that the payment crisis has been dragging on since May 2025, during the administration of former mayor Óscar “Nenecho” Rodríguez, and that during the intervention led by Carlos Pereira between June and August 2025, new overdue interest was added. The outlet also recalled that in June 2026 the municipality had made another partial payment of G. 50,941 million.
After this latest disbursement, the outstanding overdue debt amounts to G. 107,838 million, equivalent to US$ 18.5 million, according to ABC Color. The same outlet added that the scheme agreed with creditors contemplates deferring G. 181,048 million between principal and interest.
In its response to ABC Color, the municipality’s General Directorate of Administration and Finance said that so far G. 73,389 million have been paid for bond obligations from previous administrations. It also said the latest disbursement was made on September 15, one day before the assembly, and that a balance of G. 18,653 million remains corresponding to series G8 S2 and G6 S3. On that point, the Mayor’s Office said communication channels remain open to coordinate its regularization.
The same statement added that the legal mandate authorizations continue as a formal and technical safeguard mechanism for bondholders, while dialogue continues with current and incoming municipal authorities.
Sources
About this note. Written by El Notero with the assistance of artificial intelligence, based on what was published by the cited outlet. El Notero did not conduct its own reporting on this event.
