CAF, Proparco and DEG support Banco Continental SAECA in promoting access to credit for farmers in Paraguay
The entities granted a syndicated loan of USD 80 million to boost the financing of small and medium-sized enterprises related to agriculture and agro-industry.
CAF -development bank of Latin America- together with the European development agencies Proparco and DEG, granted a syndicated loan of USD 80 million to Banco Continental SAECA, with the objective of promoting the financing of projects of small and medium-sized companies in Paraguay related with agriculture and agroindustry.
"This operation reflects CAF's catalytic role, by attracting new sources of financing that provide the country's financial system with additional resources to those provided by CAF. These financial resources will facilitate the effort of entrepreneurs to carry out projects that will improve productivity and competitiveness in a sector that is intensive in the generation of employment", said Jorge Gärtner, representative director of CAF in Paraguay.
“It is a great satisfaction for us to carry out this financing with our colleagues of CAF and Proparco. Through this innovative cooperation we can satisfy the customer's need for reliable funding by reaching the required amount”, affirmed the director of the financial sector of Latin America of DEG, Gudrun Busch
“Proparco has had for many years a strong commitment towards the growth and diversification of the agriculture sector in Paraguay, as one of the key pillars of the country’s economy. We are therefore delighted to have participated with DEG, under the lead of CAF, to this large syndication that will provide additional medium-term resources to a leading player in the agric space, Banco Continental, to support the development of the industry” points out Guillaume Barberousse, head of Financial Institutions Group within Proparco.
On the other hand, the executive director of Continental Bank, Carlos Raul Moreno, pointed “these syndicated loans in conjunction with CAF, PROPARCO and DEG allow to diversify the medium-term funding source, facilitating the financing of sustainable investments and the creation of jobs, contributing in this way to the economic and social development of the country. The success of this transaction demonstrates the trust placed by the participating investors towards Banco Continental S.A.E.C.A, based on its extensive experience and solvency”, he added.
Financial systems, since they are the enablers of all economic activities, receive very special attention from CAF. Through the intermediary institutions, international trade is facilitated, the working capital of the productive sectors is financed and business development is supported with medium and long-term resources that allow the expansion of the companies' capacities. In this case, the medium-term loans will contribute to finance capital investments in the agricultural and agroindustrial sectors.
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