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IDB supports Paraguay's program to increase productivity in the agricultural sector

New financing will increase access for eligible agricultural producers to medium and long-term loans for production, processing and marketing

The Inter-American Development Bank (IDB) approved a loan of $30 million to finance a program that will contribute to increasing the productivity of the agricultural sector in Paraguay, by increasing the access of eligible agricultural producers to medium and long-term loans.

This is the second operation under a credit line for investment projects approved by the IDB in December 2015 and will be executed by the Development Finance Agency (AFD). The credits will be granted through eligible Intermediate Financial Institutions, such as banks, financial companies and cooperatives, and will finance production, transformation and marketing activities.

The loan terms will be longer than one year and will finance investments of family or business producers, including members of production cooperatives, in the acquisition of technology, infrastructure, irrigation, equipment, transport, storage, storage, livestock.,and any other purpose related to the improvement of agricultural productivity.

The AFD will be in charge of selecting the eligible Intermediary Financial Institutions that will channel the program funds, according to the risk management criteria established in its credit regulations and its product manuals. Currently, AFD has 35 eligible institutions of this type, including 14 banks, 6 financial institutions and 15 cooperatives.

The program is expected to have a positive impact on agricultural performance and that the specific results include an increase in the provision of productive inputs in the supported agricultural farms. Financing conditions for productive investment in the agricultural sector will also be improved.

The IDB loan of $30 million has a repayment term of 25 years, a grace period of 5 and a half years and an interest rate based on LIBOR.

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The Inter-American Development Bank is devoted to improving lives. Established in 1959, the IDB is a leading source of long-term financing for economic, social and institutional development in Latin America and the Caribbean. The IDB also conducts cutting-edge research and provides policy advice, technical assistance and training to public and private sector clients throughout the region.

Paraguay  incrementará el acceso de productores agropecuarios elegibles a créditos de mediano y largo plazo para producción, transformación y comercialización con apoyo del BID.

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More Information

Manuel Fernandini
IDB Project Team Leader
manuelfe@iadb.org