Paraguay to Strengthen Trade and Investment Facilitation with IDB Support

WASHINGTON — The Board of Executive Directors of the Inter-American Development Bank (IDB) has approved a $19 million loan to boost Paraguay’s international integration by attracting investment, promoting exports, and modernizing border management.

The program, which will be implemented by the Ministry of Industry and Commerce (MIC), aims to improve tools for facilitating and promoting foreign investment, advance trade integration and the internationalization of MSMEs, and reduce the time and cost of trade with Brazil.

The initiative includes the development of digital platforms such as the Single Window for Investment Attraction (VUAI), the strengthening of the country brand, and the implementation of business development services for internationalization. It will also focus on modernizing border management through the establishment of a coordinated border management model at the new International Integration Bridge between the cities of Presidente Franco and Foz do Iguaçu.

This initiative will benefit more than 600 exporting companies and 190 new foreign companies established in the country, which will receive investment attraction services, contributing to international integration, economic diversification, and more sustainable and inclusive growth. In addition, the modernization of the border crossing is expected to speed up the transit of about 135,000 export and import vehicles per year, significantly reducing times (from 50 to 25 hours) and costs.

Additionally, the project seeks to improve the business and investment climate, complementing the IDB’s support for Paraguay’s process of joining the Organization for Economic Cooperation and Development (OECD).

The loan has a repayment term of 22.5 years, an eight-year grace period, and an interest rate based on SOFR.