Paraguay's President Horacio Cartes Friday declared a state of emergency in the capital Asuncion, where more than 16,000 families have been displaced by floods.
A total of 5 billion guaranies (1.1 million U.S. dollars) in federal emergency funds have been allocated to aid affected families and handle the disaster, daily newspaper Ultima Hora reported.
Earlier in the day, residents of the severely inundated Banado Sur area had protested outside the presidential residence demanding emergency funds.
Cartes also instructed his minister of Social Action, Hector Cardenas, to make progress on a project to build 524 housing units on state lots in order to relocate families that lost their homes.
Days of heavy rain caused the Paraguay River to overflow, resulting in 16,602 displaced families in the capital, according to the Municipal Emergency and Disaster Bureau, while nationwide, some 50,000 families have had to leave their homes.
Paraguay's Meteorological Bureau has forecast more rains over the weekend, mainly in central, south and east Paraguay.
Neighboring Argentina and Brazil have also reported large-scale evacuations this week due to flooding.