Paraguay will continue to seek greater transparency in order to boost efficiency of public resource management with a $250 million loan approved by the Inter-American Development Bank (IDB).

The project is the second of two consecutive operations, the first of which was approved in April 2020 under the programmatic policy-based loan (PBP) modality. This new operation aims to enhance transparency of public spending, while ensuring that both economic actors and citizens at large gain better access to public information.

The program will include the Rindiendo Cuentas digital platform, which provides open information about the country’s public spending during the COVID-19 pandemic. The platform includes features that the public can use to submit comments, oversee public expenditure and file any eventual complaints.

Another relevant element is the enactment of rules to prevent and monitor asset laundering activities that are in line with Financial Action Task Force (FATF) recommendations, such as the creation of an administrative registry of individuals and legal entities as well as a log of end beneficiaries and the adoption of an operational analysis manual on suspicious activities.  

In the area of strengthening access to information and open government policies, a high level of compliance with the 32 commitments included in Paraguay’s Fourth Open Government Action Plan by agencies and public entities from the three branches of government is expected. These commitments include one specifically on “accountability to indigenous peoples.” Within the framework of the program, specific recommendations will be made for raising the level of participation of women’s and indigenous organizations  in order to adopt a gender and diversity approach in future open government action plans and improve the quality of the information that can be accessed through the Women’s Observatory.

The $250 million IDB loan is for a 20-year term, with a 5.5-year period of grace and an interest rate based on LIBOR.