Technical Assistance for Government Debt & Infrastructure Finance - Paraguay

The GDIF Resident Advisor will provide technical assistance to Hacienda officials who have responsibility for public debt issuance and management, and to coordinate these efforts with Banco Central del Paraguay (BCP) officials as needed.

OTA will provide assistance to achieve the following objectives: Reforms to the legal and regulatory framework that are expected to correct known policy and operational deficiencies; Changes to existing auction mechanism and conventions, including elimination of the practice of setting coupon rates prior to auction, that discourage auction participation and negatively influence pricing; Introduction of market-making by intermediaries in the secondary market to improve price discovery and increase market liquidity; Introduction of new instruments across the yield curve to attract greater investment in government securities by institutional and retail investors, possibly including Treasury Bills that the BCP can use in open-market operations; Improvement to the financial infrastructure for clearing, settlement, transfer and registry activities for government securities; Changes to organizational structure that unify all debt management f