Asunción mayor says G. 50 billion paid to bondholders to avert lawsuits

Asunción Mayor Luis Bello has asserted that the municipality is not facing an imminent risk of lawsuits from bondholders, stating that his administration has already paid G. 50 billion to them.

Bello's statement comes after reports of an extraordinary assembly convened by bondholder representatives to discuss legal action against the city. He claims the payment, made under a new understanding formalized a week prior, ensures the municipality's tranquility and is confirmed by the creditors themselves. However, this disbursement covers less than 35% of the total accumulated debt, which stands at G. 145.49 billion.

The debt includes significant amounts issued under former Mayor Óscar “Nenecho” Rodríguez. Between May 2025 and May 2026, the municipality defaulted on interest payments 12 times. A previous proposal by bondholders to receive over G. 90 billion and defer payments from 2026 to 2027 was rejected by the Municipal Board, which deemed the interest terms usurious.

Mayor Bello also acknowledged that essential public works, such as the General Santos pluvial drainage project, have been stalled for 14 months due to a lack of funds. He did not provide details on the adjusted terms of the recent payment to bondholders, beyond stating that his technical team ensured compliance with all legal regulations.