The Inter-American Development Bank announced today the approval of a US$150 million conditional credit line for investment projects (CCLIP) and a first US$50 million loan within this CCLIP to Paraguay to provide medium and long-term financing for business ventures to support development programs to promote the competitiveness of the productive sector.
The CCLIP will comprise three multisector credit programs for US$50 million each. The Development Finance Agency of Paraguay (Agencia Financiera de Desarrollo - AFD), created to channel funds to the private sector through intermediary financial institutions, will carry out the program.
“The goal of the conditional credit line and the first operation is to help the productive sector to gradually become more competitive and create jobs,” said IDB team leader Felipe Gómez-Acebo.
“The programs will support long-term financing for intermediary financial institutions, technical assistance for companies borrowing from AFD lines, and structuring of projects,” added Gómez-Acebo. “The CCLIP for successive operations allows for effective support and long-term continuity in a key sector for development.”
The first loan approved today is for a 30-year term with a 5.1/2-year grace period, at an adjustable interest rate.