MIAMI - The Finance Minister of Paraguay, César Barreto Otazú, and the President of the Inter-American Development Bank, Luis Alberto Moreno, today signed a conditional credit line for investment projects (CCLIP) for $150 million and a first loan for $50 million to promote productive sector competitiveness. They also signed three other loans for a total of more than $60 million to support education, an economic census and export promotion.
Productive sector competitiveness
A $150 million conditional credit line for investment projects (CCLIP) and a first $50 million loan under this CCLIP will provide medium- and long-term financing for business ventures to support development programs that will enhance the competitiveness of the productive sector and create jobs. The CCLIP will consist of three multisector credit programs for $50 million each. The programs will support long-term financing for intermediary financial institutions, technical assistance for borrowing companies and project structuring. The CCLIP for successive operations allows for effective support and long-term continuity in a key sector for development.
The Development Finance Agency of Paraguay, which channels funds to the private sector through intermediary financial institutions, will carry out the program.
Basic education
A $45 million loan will finance the second stage of the Escuela Viva program to support access, retention and completion of quality basic education for students in the most vulnerable groups of the population. The program is helping reduce the disparity in basic education between different income groups and between rural and urban areas.
The first stage of the Escuela Viva program, carried out from 2001 to 2007, led to significant improvements in access and years of schooling in participating schools, as well as in the quality of education. The second stage will reduce the number of overage students and increase graduation rates in low-income areas. It will also improve coverage in urban-fringe, rural and indigenous schools, and will increase years of schooling and academic achievement. The project will consolidate coordination among parents, communities and teachers in basic education school management.
Export promotion
A $10 million loan will help boost the exports of participating sectors and firms and will promote a sustainable increase in the growth rate of the country’s exports. The project will strengthen the public institutional export system and provide direct support for business projects carried out under sector and business export strategies.
Economic census
A $6.3 million loan will support an economic census in Paraguay to obtain relevant information to help define, implement and evaluate policies and programs for economic development. Information gathered will allow for more efficient decision-making by the public and private sectors and local, departmental and central governments.