PARAGUAY LAW AND PRACTICE Contributed by: Manuel Arias, Carla Sosa, Martin Carlevaro, Milena Sljivich, Alexander Berkemeyer and Antonio Villa Berkemeyer, BKM - Berkemeyer
5. Capital Markets 5.1 Capital Markets Overview
enhances investor protection and system integrity, enables the adoption of new technologies and instru - ments, and reduces regulatory frictions through a uni - fied and coherent framework. It confirms and consoli - dates the Central Bank of Paraguay (BCP), through the SIV, as the competent authority for implementation and supervision. 5.2 Securities Regulation In Paraguay, the stock market is primarily regulated by the new Capital Markets and Products Law (Law No 7572/2025), promulgated on 7 November 2025. This innovative and comprehensive regulatory framework modernises and unifies the regulation of the capi - tal and products markets, replacing prior laws such as Law 5810/17 (public securities offerings), Law 5452/15 (investment funds) and Law 1163/97 (prod - uct exchanges and brokers). This new Law unifies matters previously legislated separately into a single piece of legislation, including public securities offer - ings and their issuers, the securities market registry, investment funds and their managing entities, credit rating agencies and securitisation companies, thereby improving coherence and eliminating overlaps, gaps and contradictions. Regarding securities market supervision, the Capi - tal Markets and Products Law (Law No 7572/2025) confirms and consolidates the BCP, through the SIV, as the competent authority for implementation and supervision. In exercising its powers, the SIV will issue comprehensive regulations to implement these provi - sions. The new regulations to be issued by the SIV will include the following key requirements: • all public securities offerings require prior authori - sation from the SIV; • registered entities must inform the SIV, the stock exchange and the public about their legal, eco - nomic and financial situation, as well as any mate - rial facts regarding the securities issued or their offering; • entities supervised by the SIV must disclose infor - mation to the SIV and the stock exchange regard - ing transactions involving related parties; and
Although still in its early stages, Paraguay’s capital market has experienced notable growth in recent years, with promising prospects for sustained expan - sion, significantly bolstered by the new Capital Mar - kets and Products Law (Law No 7572/2025). Bonds remain the dominant traded instruments, according to transaction data up to October 2025. For 2025, the accumulated trading volume had already exceeded USD3.5 billion by July, according to the monthly trading summary published by the Securities Supervisory Authority (SIV), with projections suggest - ing it will surpass USD7 billion by the end of the year, which will be an all-time high. This growth is fostered by dynamic private investment, the improved coun - try risk rating, technological modernisation and more active investors. Despite advancements in the financial ecosystem, a significant preference for financing through the bank - ing system persists. While capital markets offer advan - tages such as access to cheaper long-term funding and diversification, the speed and tailored solutions provided by banks remain more appealing to many businesses, particularly small and medium-sized companies. However, the expansion of the capital market has driven a steady increase in participation, including companies exploring alternative investment opportunities, such as raising funds through the stock market. This dynamism in the stock market positions Para - guay as an attractive destination for both local and international capital. This appeal is further strength - ened by the country’s attainment of investment grade status, following the upgrading of its credit rating by Moody’s to Baa3, reflecting improved macroeconomic indicators and prudent fiscal management; subse - quently, S&P also upgraded Paraguay to investment grade (BBB-/A-3), consolidating the country’s invest - ment grade status with two major agencies. The new Capital Markets and Products Law (Law No 7572/2025) represents a structural reform that aligns the Paraguayan market with international standards,
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