IIC Will Support The Development Of The Agricultural Sector In Paraguay

11/17/1999

IIC's funding to Banco Alemán Paraguayo will support product diversification in Paraguay WASHINGTON, D.C. — On November 12, 1999, the Board of Directors of the Inter-American Investment Corporation (IIC) approved a credit facility of $7.5 million to Banco Alemán Paraguayo S. A. (BAPSA) in Paraguay. The funding will be used for on-lending to Paraguayan small and medium-size enterprises, mainly for export-related projects.

Through this operation, the IIC will help to improve the workings of the financial system and support the increased availability of medium and long-term credit lines to small and medium-size farmers in Paraguay. The agricultural sector in Paraguay is an important source of foreign exchange for the country. IIC's funding will allow BAPSA to diversify its funding sources for its long-term lending operations, support product diversification, and utilize its experience in project finance.

The credit facility is expected to reach at least forty-five final beneficiaries over its expected seven-year life, contribute to the creation of approximately 450 jobs, generate over $80 million per year in export earnings, and contribute more than $90 million per year to Paraguay’s GDP.

Contact: Steven Reed

Telephone: (202) 623-3981

Email: stevenr@iadb.org