Paraguay's Ministry of Industry and Commerce (MIC) has presented 13 proposed legal and regulatory reforms intended to improve financing for micro, small and medium-sized enterprises (MSMEs). The package is under discussion and does not constitute a new loan programme currently available to applicants.
Why access to credit matters
The MIC argues that financing constraints limit business investment and expansion. According to figures presented by the ministry, 43% of national financial credit goes to consumption and only 5% to the productive industrial sector. More than 500,000 MSMEs account for around 65% of private-sector employment, yet many struggle to meet formal lending and collateral requirements.
What could change
Proposals include modernising factoring so businesses can obtain early payment against invoices, expanding movable-asset collateral and reciprocal guarantee mechanisms, accelerating payments to government suppliers, and improving cooperative and digital financing channels. Their impact will depend on the final legislation, implementing rules and the terms offered by lenders.
Radar assessment: the MIC estimates that productive lending could expand by 20% to 40% if the reforms succeed. This is a projection, not an approved policy outcome or guaranteed increase. Technical working groups and draft legislation are the next steps. Sources: MIC, October 9, 2026; Paraguayan Senate, October 8, 2026. This article is not financial advice.
Source: Ministry of Industry and Commerce (MIC), October 9, 2026