CAF approves USD 300 million to support sustainable development in Paraguay
With the purpose of supporting Paraguay's budget management, the Board of Directors of CAF, Development Bank of Latin America, approved a USD 300 million loan, which will promote a recovery of the country's economic growth, resilient to the impacts of climate change and in an environmentally sustainable manner.
The resources are part of the Budget Support Programme for the Sustainable Development of the Republic of Paraguay, which seeks to promote economic resilience mechanisms in processes of fiscal consolidation and sustainable development in a post-covid scenario.
"Paraguay and the other countries in the region have made an exemplary effort to confront the pandemic, protect the most vulnerable and promote a path of economic growth that is in line with the fight against climate change, and to advance in the recovery of fiscal spaces and debt stabilisation in the medium term. This credit is aimed at contributing to the timely execution of public resources as the unconditional ally that we are," said CAF's Executive President, Sergio Díaz-Granados.
With this financing, CAF plans to support the Republic of Paraguay's fiscal management by promoting the availability and timely execution of public resources to address the economic and social impacts caused by the pandemic and adverse climate events in the country, strengthening the countercyclical effect of fiscal policy through the promotion of public policy actions in the area of sustainable development and fiscal sustainability. This approval was made within the framework of CAF's CLXXV Board of Directors, chaired by Paraguay's Minister of Finance, Oscar Llamosas, and in which the Vice Minister of Economy, Iván Hass, and CAF's Southern Regional Manager, Jorge Srur, also participated.
CAF has been contributing with its member countries to support public policy instruments that are effectively implemented to ensure economic recovery in line with the Sustainable Development Goals (SDGs) of the 2030 Agenda, the Paris Agreement, and the Post-2020 Global Biodiversity Framework.
