Paraguay's investment grade is an opportunity, not a guarantee, warns banks association

During the opening of the Banking Convention, Osvaldo Serafini, president of the Association of Banks of Paraguay (Asoban), lauded the national financial system's strength and resilience. He noted that in a world of global uncertainty, Paraguay stands out, evidenced by its second Investment Grade rating, which confirms the soundness of its long-term macroeconomic direction.

However, Serafini cautioned against complacency, stating, "Let's be clear: this rating is not a finish line, nor an automatic passport to prosperity. It is a door of opportunity, which opens and closes depending on the coherence of what we do from now on." He stressed that international capital markets reward sustained predictability, which is built not only on sound macroeconomic indicators but also on institutions operating within clear, stable, and well-known rules.

Serafini also addressed macroeconomic stability, emphasizing the need for firmness and temperance to navigate political pressures and populist solutions that hinder harmonious development. He acknowledged the positive steps in reaching agreements to honor short-term commitments with state suppliers, an initiative the financial system has supported.

Despite these efforts, Serafini warned that the banking sector cannot merely celebrate temporary fixes. "It is imperative to address the root of the problem with equal responsibility: the structural challenges of fiscal overspending and the sustainability of pension systems. These problems have origins that transcend the current situation but whose resolution is essential," he stated, urging a focus on long-term fiscal health.