This September the government has issued treasury bonds for bidding through the electronic system of the Central Bank of Paraguay. The placement period expires November 2014 and the bonds have an interest rate of 6.98%.

Paraguay´s Ministry of Finance has issued treasury bonds for the amount of eighty billion Guaranies (local Currency – approximately 17.77 million US dollars at the current exchange rate) on September 4, 2013, for bidding through the electronic system of the Central Bank of Paraguay.

The auction type to be used is “Dutch auction” or single price, where each participant would stipulate the amount sought and the interest rate offered for each term. Instead of being issued in physical form, the bonds are issued in a dematerialized format and identified as electronic records or book-entry account in the Securities Depository of the Paraguayan Central Bank.

Placement period expires in 426 days, November 5, 2014, with an interest rate of 6,95%. The interested parties must be registered before the Paraguayan Central Bank to operate through the electronic system, according to Central Bank decision nº 2 of January 25, 2011. The parties would file proposals with the amount and interest rate they would like to be adjudicated1.