Paraguayan senator doubts widespread debt, cites economic formalization

Paraguayan Senator Dionisio Amarilla is challenging the notion that the population is over-indebted, proposing instead that the increased use of credit cards signifies a formalization of the economy. He intends to formally request information from the Central Bank of Paraguay (BCP) to examine the evolution of credit card usage, interest rates, and market behavior over the last five years.

Amarilla expressed concern that some sectors are promoting a narrative of generalized over-indebtedness, which he believes is inaccurate. He argues that the growth in credit card usage is a result of economic formalization and the attractive promotions offered by financial institutions. "I believe people use credit cards more because the economy is becoming more formalized," Amarilla stated.

He further questioned the prevailing narrative, saying, "I doubt the population is over-indebted." Amarilla emphasized the Senate's role in presenting an institutional stance that does not blindly accept this interpretation. He suggested that the Senate should also send signals that "we don't all buy into this malicious news."

Amarilla pointed to a previous BCP report indicating that accelerated consumption growth reflects "financial inclusion and economic improvement." He seeks official data to clarify the situation and, if his hypothesis is confirmed, believes the Senate should take an institutional position. "If my thesis is wrong, we will know with the reports. But if it is confirmed, we will have to make a decision and also denounce the alleged over-indebtedness of the population," he affirmed.

However, his assertions have drawn strong rebuttals from fellow senators Blanca Ovelar and Esperanza Martínez. They contend that the economic reality for households indicates a significant decline in purchasing power, directly contradicting Amarilla's views.