Paraguay shields against contingencies with CAF line of credit
The CAF Board of Directors has approved a line of uncommitted stand-by credit to ensure the availability of resources in an effort to counteract potential risky situations associated with capital market contingencies hindering or inhibiting the Public Treasury from placing competitive bonds.
In order to support the Paraguayan Ministry of Finance’s government debt management strategy, the CAF- Development Bank of Latin America Board of Directors has approved a line of uncommitted stand-by credit for the Republic of Paraguay in the amount of up to $300 million in liquid assets in an effort to counteract the country’s response to widespread external economic crashes or global or regional financial contingencies that may hinder the nation’s competitive access to capital.
"This contingent financing will help ensure the availability of funds in anticipation of a real financial need, which together with Paraguay’s orderly fiscal management and macroeconomic stability, is an important signal of investor confidence, which will allow the country to continue to grow and advance in its development strategies", said CAF Executive President and CEO Luis Carranza.
CAF’s support for Paraguay has recently been focused on the following strategic sectors: economic and integration infrastructure, social and environmental development, institutional strengthening, and development of the productive sector and SMEs, through initiatives in favor of the Paraguayan people, such as recent approvals related to the “National Route 9 and Driveways Habilitation and Maintenance Project” in the amount of $400 million, as well as the “Program for the Strengthening of the National Interconnected System’s Transmission and Rural Electrical Distribution - ANDE” for the energy sector for $170 million, among others.
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