Paraguayan lender Financiera Río SAECA has completed its purchase of the assets and liabilities of fellow lender Crisol y Encarnación Financiera SA (CEFISA), La Nación reported Dec. 13, citing the president of Financiera Río, Cristian Heisecke Velázquez.

Financiera Río acquired six branches and a portfolio of 26,000 clients. The deal is worth about 340 billion guaranies, or about US$58.5 million, Heisecke said.

Heisecke highlighted that the reason for the purchase is to expand Financiera Río's operations in parts of the country where it does not have a lot of business and to harness CEFISA's good reputation, especially in the south of Paraguay.

In addition, given the country's new banking law and tighter regulatory requirements, banks need greater equity and a "critical mass of operations" in order to grow, the executive said. "We are looking toward the future of the financial market," he was quoted as saying.

Financiera Río, which was founded in 2010, offers products and services to small businesses and consumers in Paraguay.

As of Dec. 13, US$1 was equivalent to 5,825.00 Paraguayan guaranies.