Countries › Paraguay › Guide › 10. Capital markets and finance › Deposit guarantee and bank resolution in Paraguay: the 75 minimum wage cover, quarterly contributions, regularization plans and why banks cannot go bankrupt

Deposit guarantee and bank resolution in Paraguay: the 75 minimum wage cover, quarterly contributions, regularization plans and why banks cannot go bankrupt

Last verified: 2026-10-28 · Status: Stable

Deposits in private banks, finance companies and housing savings and loan companies are guaranteed up to 75 monthly minimum wages per person per entity, which is PYG 228,300,000 (US$38,904) with the wage in force from 1 July 2026, and 100 percent when the deposit backs a foreign trade operation or is a court deposit. The Fondo de Garantía de Depósitos is funded by the State and by compulsory quarterly contributions of 0.12 percent of average deposits, and pays within 15 days of a resolution (extendable by 15). A troubled entity first goes through a 90 day regularization plan and, if it fails, the BCP resolves it by transferring deposits and assets; financial entities cannot file for or be declared bankrupt by creditors.

USD figures use PYG 5,868.31 per US dollar, the Banco Central del Paraguay reference quotation for 28 October 2026. Fines tied to the minimum wage use PYG 3,044,000 per month and PYG 117,077 per daily jornal, in force from 1 July 2026 under Resolución MTESS Nº 670/2026. Conversions are for orientation only.

Key facts

Deposit guarantee per person per entity	75 monthly minimum wages Ley 2334/2003 art. 1 c) and g), as of 2026-10-28 · in force
Deposit guarantee per person per entity in guaraníes, at the minimum wage from 1 July 2026	228300000 PYGLey 2334/2003 art. 1 c); Res. MTESS 670/2026, as of 2026-10-28 · in force
Deposit guarantee per person per entity in US dollars at PYG 5,868.31	38904 USDLey 2334/2003 art. 1 c); BCP rate 28 Oct 2026, as of 2026-10-28 · in force
Quarterly contribution to the deposit guarantee fund	0.12 % of average depositsLey 2334/2003 art. 3 num. 2, as of 2026-10-28 · in force
Deadline to honour the guarantee after the resolution is approved (extendable by 15)	15 calendar daysLey 2334/2003 art. 1 h), as of 2026-10-28 · in force
Maximum length of a bank regularization plan	90 calendar daysLey 2334/2003 art. 7, as of 2026-10-28 · in force
Can a financial entity be declared bankrupt at a creditor's request	No, the BCP resolves or liquidates it Ley 861/96 art. 133, as of 2026-10-28 · in force

The rule

1. Scope and amount of the guarantee. The guarantee is explicit, limited, compulsory and paid for, and protects deposits of the public in banks, finance companies and housing savings and loan companies under Superintendencia de Bancos control. It covers the whole of a person's money placed with an entity in any form, up to the equivalent of 75 monthly minimum wages for unspecified activities in the capital, per natural or legal person and per entity; the limit rises to 100 percent of the deposit when it secures a foreign trade operation or is a court deposit for bonds required by civil or criminal procedure. Before paying, the deposits are netted against the depositor's debts to the entity, which become due for that purpose; joint deposits are paid in equal shares within the per person limit; holding several deposits in one entity does not raise the limit.
Cost to do it: Free for depositors; the entities pay the contributions in the next rule.
Example: With the PYG 3,044,000 minimum wage in force from 1 July 2026, a company holding PYG 500,000,000 at one bank is covered up to PYG 228,300,000, after netting any loan it owes that bank. / The cover per person per entity is about US$38,904 at the 28 October 2026 rate; a US$1 million treasury balance is mostly uninsured unless spread across entities.Ley Nº 2334/2003 De Garantía de Depósitos y Resolución de Entidades de Intermediación Financiera, art. 1, with art. 1 a) as reworded by Ley Nº 2723/2005, Art. 1 a), b), c), e) and g), 2003-12-12 official text · verified 2026-10-28 · changed: Ley 2723/2005, promulgated 27 September 2005, reworded art. 1 a) to name the covered entities: banks, finance companies and housing savings and loan companies under Superintendencia de Bancos control.

2. Exclusions and payment. Deposits of the entity's managers and directors and of persons related to the entity under Ley 861/96 art. 46 and 47 are excluded, as are deposits that are simulated, indirect, fraudulent or illegal. The guarantee is honoured under procedures set by the BCP Board when it orders the resolution, within at most 15 calendar days of the resolution being approved, extendable once by 15 days by reasoned Board resolution.
Cost to do it: No cost to the depositor.
Example: The deposit of a shareholder group that controls the failed finance company is not covered at all, even below the 75 wage limit. / A related company's US$30,000 deposit gets nothing from the fund; an unrelated client's US$30,000 is covered in full because it is below about US$38,904.Ley Nº 2334/2003 De Garantía de Depósitos y Resolución de Entidades de Intermediación Financiera, Art. 1 f) and h), 2003-12-12 official text · verified 2026-10-28

3. How the fund is financed. The Fondo de Garantía de Depósitos (FGD) is administered by the BCP in separate accounts, is not part of the BCP's equity and cannot be attached. Its resources are a State contribution equivalent to US$50 million, made wholly or partly in government bonds; compulsory quarterly private contributions of 0.12 percent of each entity's average deposits in local and foreign currency for the quarter, debited automatically from the entity's BCP current account at the close of the third business day of the next quarter if not paid voluntarily; and, if needed, State bonds charged to future contributions. Contributions are suspended by BCP Board resolution when the fund's net operating balance equals 10 percent of system deposits, and they are deductible for income tax.
Cost to do it: 0.12 percent of average quarterly deposits each quarter, about 0.48 percent a year; a bank averaging PYG 1,000,000,000,000 of deposits pays PYG 1,200,000,000 (US$204,488) a quarter.
Example: A finance company with average deposits of PYG 300,000,000,000 in a quarter pays PYG 360,000,000 into the FGD for that quarter. / A bank with US$500 million of average deposits pays about US$600,000 a quarter, deductible for income tax.Ley Nº 2334/2003 De Garantía de Depósitos y Resolución de Entidades de Intermediación Financiera, Art. 2 and 3, 2003-12-12 official text · verified 2026-10-28

4. Regularization before resolution. An entity must enter a regularization plan when, among other triggers, it has a reserve requirement shortfall beyond the BCP threshold, exceeds prudential limits for more than ten consecutive calendar days, posts losses in two consecutive quarters that threaten its solvency, has a solvency ratio below the legal minimum for at least five business days, needs lender of last resort facilities, sends false information, offers deposit rates markedly above the market, or receives an adverse or disclaimed external audit opinion. The Superintendencia de Bancos rules on the plan within five business days; once approved it binds the entity, lasts at most 90 calendar days and may include capital injections, asset sales, removal of directors, a sale or merger with BCP authorization and a freeze on new branches.
Cost to do it: Cost of the plan measures (new capital, special audits); no filing fee in the law.
Example: A finance company whose solvency ratio stays below the minimum for five business days must present a plan; the Superintendency answers within five business days. / Investors in a Paraguayan lender should model a 90 day recapitalization window, not a lengthy court process.Ley Nº 2334/2003 De Garantía de Depósitos y Resolución de Entidades de Intermediación Financiera, Art. 6 and 7, 2003-12-12 official text · verified 2026-10-28

5. Resolution, intervention and no bankruptcy. Grounds for resolution are suspension of payments, a solvency ratio below 50 percent of the legal minimum, rejection or early termination of the regularization plan, or revocation of the licence; the BCP Board orders the start of resolution within 24 hours of learning of the ground and may transfer insured deposits with matching assets to solvent entities, including through securitization vehicles that the FGD can finance. Bankruptcy rules apply only to the residual balance after resolution. Under the banking law, financial entities cannot apply for creditor arrangements or bankruptcy, nor be declared bankrupt at a creditor's request: judges must reject such petitions and refer them to the BCP; voluntary liquidation is possible only after repaying all deposits and with BCP authorization.
Cost to do it: Uninsured creditors rank after the transferred insured deposits; recoveries depend on the residual balance.
Example: A supplier owed PYG 2,000,000,000 by a failed bank cannot file a bankruptcy petition; it must lodge its claim in the BCP led process. / An uninsured US$340,000 claim against a failed bank is paid only from the residual balance after the FGD backed transfer of deposits.Ley Nº 2334/2003 De Garantía de Depósitos y Resolución de Entidades de Intermediación Financiera; Ley Nº 861/96 General de Bancos, Financieras y otras Entidades de Crédito, Ley 2334/2003 art. 12 to 14 and 18; Ley 861/96 art. 117, 118 and 133, 2003-12-12 official text · verified 2026-10-28

Stage	Trigger or rule	Timing	Norm
Regularization	Solvency below minimum 5 business days, limits exceeded over 10 days, last resort funding, adverse audit, among others	Plan decided in 5 business days, lasts up to 90 days	Ley 2334/2003 art. 6 and 7
Intervention	Loss of more than 50% of effective equity, suspension of payments, failed plan	Immediate, by BCP Board	Ley 861/96 art. 117 and 118
Resolution	Solvency below 50% of minimum, suspension of payments, rejected plan, licence revoked	Ordered within 24 hours	Ley 2334/2003 art. 13 and 14
Payout	Up to 75 minimum wages per person per entity, PYG 228,300,000 (US$38,904)	15 days, plus 15	Ley 2334/2003 art. 1
Residual balance	Bankruptcy rules apply only after resolution	After resolution	Ley 2334/2003 art. 12

From early warning to payout (minimum wage PYG 3,044,000 from 1 Jul 2026)

Worked example

A foreign owned company keeps PYG 900,000,000 (about US$153,367) at one Paraguayan bank and owes it PYG 100,000,000 on a credit line. If the bank is resolved, the balances are netted first, leaving PYG 800,000,000, and the FGD pays at most PYG 228,300,000 (about US$38,904); the remaining PYG 571,700,000 is an uninsured claim against the residual balance. Splitting cash across several entities multiplies the cover because the limit applies per entity (Ley 2334/2003 art. 1).

Step by step

1. Map treasury balances by entity and compare each one, net of debts to that entity, with the 75 minimum wage limit (recalculate every July when the minimum wage changes).
2. Check whether any group company is a related person of the bank under Ley 861/96 art. 46 and 47, since its deposits are excluded.
3. Mark foreign trade guarantee deposits as such in the documents, because they are covered at 100 percent.
4. If you own a licensed entity, budget the 0.12 percent quarterly contribution and keep cash in the BCP current account for the automatic debit on the third business day of each quarter.
5. Build covenants and monitoring around the regularization triggers, which can force a 90 day plan before any default.

Common traps

The limit is in minimum wages, not in a fixed amount, so it moves each time the minimum wage is reset; 75 wages were PYG 228,300,000 from 1 July 2026.
Deposits are netted against any loan from the same entity before the guarantee is applied (Ley 2334/2003 art. 1 e), so borrowers have less cover than their gross balance suggests.
Cooperatives supervised by INCOOP are not among the entities listed in the reworded art. 1 a), so deposits there fall outside this guarantee.
Creditors cannot push a bank into bankruptcy; judges reject such petitions and refer them to the BCP (Ley 861/96 art. 133).
Offering deposit rates markedly above the market is itself a regularization trigger (Ley 2334/2003 art. 6 h), which matters for new entrants pricing aggressively.

Sources

← Banks and foreign bank branches in Paraguay: licensing a branch, solvency ratios, legal reserve, dividends and prohibited operationsPublic offerings and listings in Paraguay: registration with the Superintendencia de Valores, SAECA companies, foreign issuers and cross listings, and delisting →

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