CAF has granted a line of credit for USD 50 million to the Paraguay Development Finance Agency

The agreement was signed by the CAF representative in Paraguay, Jorge Srur, and the president of the AFD, Stella Marys Guillén. Also present for the AFD were the General Manager, Analía Negri, the board member, Gerardo Ruiz Díaz and the Planning and Finance Manager, César Cardozo. On behalf of the CAF, the Senior Executive, Hernán Benítez, also participated.

The resources from this facility will be used to finance working capital, investments, economic activities linked to the agro-industrial sector, foreign trade operations and partial guarantees for AFD bond issues.

In this way, the credit line seeks to contribute to the consolidation of Paraguayan small and medium-sized businesses (MSMEs), especially those related to the agricultural and agro-industrial production chain.

It is important to mention that this facility allows disbursements in local currency through the CAF Bond Issuance Program in guaraníes (registered for an amount equivalent to USD 75 million). The additionality of this Program is highlighted, which allows the development bank to issue bonds at various terms, thus contributing to expanding financing and investment tools and deepening the Paraguayan capital market. In July 2023, CAF successfully carried out its first bond issue in guaraníes, under this Program, for an amount equivalent to USD 10 million.

Jorge Srur

“In this way, CAF reaffirms its commitment to the sustainable and inclusive economic development of Paraguay, as an ally of CAF, strengthening the capabilities and enhancing the actions of both institutions in the country, at the same time AFD strengthens its role as a driving agency. of inclusive productive investment in the country,” said Jorge Srur during the presentation of this agreement.

For her part, the president of AFD, Stella Marys Guillén, said “At AFD we are happy to start the year with this historic alliance, with a sister institution with which we share the mission of improving the quality of life of our compatriots; promoting, through financing, the sustainable development of the country. With this credit operation we are meeting two important milestones for AFD. It is the first operation in 18 years of institutional life with the CAF and we are also making use of a new legal authority which is to contract loans with the support of our own balance sheet.”balance”.

Stella Marys Guillén