Paraguay launches financial education strategy to combat rising consumer debt

Paraguay's government has introduced a new National Financial Inclusion Strategy for 2026-2031, aiming to address rising consumer debt and enhance financial education among its adult population. This initiative follows a successful push to increase access to financial services, with over 60% of adults now holding a bank account.

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We have made very significant progress since that time, and now we have to take an additional step. We have to start working on issues that are much more about the utilization of the tools available, emphasize financial education, the effective use of the tools that are available in the financial system today, and a not insignificant issue that relates to the consumer defense system.

Despite the significant increase in financial inclusion, from 20% in 2012 to nearly 62% currently, the lack of proper education on managing these tools has resulted in a sharp rise in personal debt and a low level of savings. The new strategy marks a conceptual shift from the previous phase, which primarily focused on increasing bank account ownership.

Óscar Lovera, the Minister of Economy and Finance, acknowledged that the initial focus was on bancarization. However, he explained that the current phase will emphasize responsible resource management and the effective use of available financial tools. The strategy also incorporates consumer protection measures.

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We have to look at specific cases and not only from the point of view of indebtedness, but of people who have even been victims of sales of products that today represent a real problem in their day-to-day lives.

Lovera highlighted that financial tools can only yield positive outcomes if used correctly, noting instances where individuals have become victims of problematic product sales. He pointed to micro, small, and medium-sized enterprises (MSMEs) as a particular concern, where entrepreneurs often finance projects with consumer loans due to a lack of suitable instruments. This, he stated, creates unsustainable situations, prompting collaboration with the financial sector to tailor credit solutions to the needs of entrepreneurs and individuals.

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This ends up generating a problem in the future that does not make the project sustainable. That is why we work jointly with the financial sector to adapt to the needs of each entrepreneur or person who needs access to credit.