Support for the Paraguayan productive sector

(Asuncion, September 20, 2013). CAF, Development Bank of Latin America, announced recent approvals in favor of the Paraguayan banking system for a total of USD 70 million. These resources are aimed at the productive sector, and seek to provide additional sources of financing with medium term resources to local institutions. The purpose of these facilities is to finance foreign trade, investments and capital goods, and projects.  

Enrique Garcia, CAF's Executive President, said that "financial access continues to be a limitation for entrepreneurial development in our region, and that is an obstacle that we want to avoid if we want to initiate the productive transformation process that Latin America requires". He highlighted the institution's work in favor of the financial systems of the region, stating that "the facilities granted to the Paraguayan banking system at this time provide them with the possibility of co-financing investments and projects that favor development".  

CAF promotes the consolidation of the financial systems so that institutions in the sector not only have the necessary resources to cover their client operations, but also to promote competitive financing and sustainable entrepreneurial development.  

The Economy and Development Report (RED, for its acronym in Spanish) published in 2011 by CAF, analyzes the situation in Latin America in terms of the development of financial markets. The report makes a special emphasis in the access to financial services and its catalyzing role in economic development. In addition, it includes the results of a survey carried out in 17 cities, providing new information regarding the use of financial services in different countries of the region.  

The report highlights that in Latin America the volume of financial intermediation and access to financial services is lagging with respect to what it should be considering its level of economic development.