Paraguay’s forthcoming government seeks congressional approval to borrow for contractor debt settlements through multilateral lenders. To meet the 1.5% fiscal deficit legal limit, tax increases might be essential if economic growth falls short. The market predicts a 2% GDP revenue boost from the Itaipu treaty renegotiation, yet some analysts are skeptical about Paraguay attaining an investment-grade credit rating soon. However, reforms in the security market might spur private investment, especially in housing.