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Paraguay to Enhance Logistics, Integrate Trade and Attract Investments with IDB Support

The Inter-American Development Bank (IDB) has approved a $100 million loan to improve Paraguay's logistics performance, increase its trade integration and encourage foreign investment. 

The operation will directly benefit logistics chain actors by improving regulatory processes, institutional management and sectoral planning. The program’s measures to digitalize and simplify the foreign trade processes will also benefit businesses in general—particularly micro, small and medium-sized enterprises—by giving them greater access to international markets and making procedures faster and less expensive.

The operation will also directly benefit women-led businesses and implement actions to boost gender inclusion in the export sector. In addition, the people of Paraguay will indirectly benefit from faster and less expensive foreign trade, more diverse exports, and planning for resilient infrastructure and logistics services.

The operation, which has been approved by the IDB's Board of Executive Directors, is a programmatic policy-based loan. It is also the first in a programmatic series of two consecutive loans that are technically linked but financed independently.

This program will support reforms to strengthen logistics management and trade facilitation institutions, boost sustainable investment in logistics infrastructure and services, expand business access to international markets, and promote foreign direct investment.

It will support work to create the National Logistics Council and its technical secretariat, modernize and digitalize the Ministry of Public Works and Communications, and strengthen the Investment and Export Network (REDIEX) as an institution.

In addition, it will strengthen regulations and policy instruments for decarbonizing the logistics sector and making it more sustainable; promote trade facilitation, exports and foreign investment; and develop improvements in intellectual property, free competition and business climate.

The $100 million IDB loan has a 20-year repayment term, a 5.5-year grace period, and an interest rate based on the Secured Overnight Financing Rate (SOFR).

About the IDB

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. Take our virtual tour.


Alvarez-Rodriguez,Isabel M.

Alvarez-Rodriguez,Isabel M.

Planes,Maria Soledad

Planes,Maria Soledad
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