US$ 85 million for Paraguay’s anti-crisis program

(Caracas, June 16, 2009).- As part of its anticyclical actions in favor of Latin America and with the purpose of partially financing the Paraguayan Government’s Strategic Anti-crisis Plan, the Corporación Andina de Fomento (CAF) approved funding of US$ 85 million for the Republic of Paraguay for implementing the Social and Infrastructure Investments Support Program (PAISI). The executing agency will be Paraguay’s finance ministry.

According to Enrique García, the Corporation’s executive president, “CAF has been increasing its support to the region in an effort to stimulate economic growth, coordinating its crisis response initiatives with the governments of shareholder countries; and approval of this loan to Paraguay is proof of that.” “It is at times like this when it becomes clear that multilateral development agencies must play a major anticyclical role,” added the CAF’s executive president.

The purpose of the PAISI is to contribute to the Government of Paraguay’s Management Plan, specifically within the context of its Anti-crisis Plan, by supporting the country’s economic revival through the implementation of a series of social and infrastructure investment programs in different sectors that will have with a high economic and social impact and a positive influence on the population’s standard of living.

In addition, Enrique García highlighted that “the crisis that the international economy has been experiencing in recent months has been characterized by a loss of confidence in the markets and the value of real financial assets. As a result, the region’s economy has been hard hit by the decline in consumption, all of which has combined with a scenario of global recession that puts the growth expectations for the next few years estimated by the majority of the economies in jeopardy.”

The total cost of the program is US$ 149 million, with CAF contributing financing for 57% and the Republic of Paraguay covering the difference. This amount is for a series of programs located in practically all regions of the country and will go to the following sectors: agriculture and rural development, housing and habitat, education, social protection, and economic infrastructure.