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Best Bank: BBVA Paraguay |
Growth has been the name of the game for BBVA in Paraguay. In 2008, loans grew 44.7% and funds rose 27.1%. The bank’s focus on the retail market, with an emphasis on credit cards and mortgage loans, paid off, with an overall growth rate of 98.6% in 2008, and a return on equity for the retail division of 59.6% by March of this year.
Between January and April, banking profits in Paraguay rose 16.5% but by March 31 the financial system reported a sustained delinquency rate of 1.74%. However, BBVA Paraguay managed to maintain a rate of 0.43%, one of the lowest in the market, despite its growing personal loans business.
In October, BBVA Paraguay signed an agreement with the structured and corporate finance department at the Inter-American Development Bank. The agreement adds BBVA’s subsidiary as an issuing bank to the IDB’s trade finance facilitation programme.
Interbanco, Citi Paraguay and BBVA Paraguay also teamed up to sign an agreement with the Overseas Private Investment Corporation to channel 10-year funds to small and medium-sized companies.
The banking system in Paraguay lacks long-term funding routes so this swap transaction helps open new financing opportunities.
