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Paraguay to increase foreign direct investment and employment with IDB support

Loan will finance a finance strategic planning, training, and institutional modernization for investment promotion

The Inter-American Development Bank (IDB) approved a loan to Paraguay for $10 million to finance a program aimed at increasing foreign direct investment and job creation.

The Investment Promotion Program will support the development and implementation of a strategic investment promotion plan, institutional modernization of the country’s export promotion agency, and a training program for employees engaged in investment promotion.

In addition, the program will carry out medium and long-term structural measures that incorporate international best practices in investment promotion. Included will be a system that includes a single window investor service, a post-investment unit that will facilitate the continued development of new investments; and a web platform that will integrate all institutional systems related to promoting and attracting investments.

In addition, the program will finalize the design and implementation of a strategy to promote the country’s image as an investment destination, a set of innovative promotion initiatives, and an observatory to track the investment climate.

The program is expected to result in a substantial increase in foreign direct investment as a share of Paraguay’s gross domestic product and improve the country’s composition and level of employment per dollar of investment.

The IDB loan for $10 million term was extended for a term of 25 years, with a 5-½ year grace period, and an interest rate based on LIBOR.

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