This is a colending program with Banco Regional to finance small and medium-size enterprises (SMEs) in Paraguay's agricultural and agribusiness sectors that meet the IIC and Banco Regional loan eligibility criteria and environmental and labor requirements. Banco Regional, the agent, shall be responsible for arranging, assessing, granting, and managing the loans under this program. This program will enable eligible companies to finance investments for purchasing agricultural machinery, preparing and preserving the land for agricultural use, working capital, or a combination thereof, thus making it possible to expand the sector, generate direct and indirect employment, and improve the financial structure of SMEs, which have limited access to financing with terms of more than one year.
Environmental Classification and Issues:
This is a Category III project according to the IIC’s environmental and labor review procedures because specific impacts might result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. Each subproject will be required to comply with national environmental and labor laws, regulations and standards, and Banco Regional must, throughout the life of the program, ensure that at least one (1) of its employees has attended the IIC’s financial intermediary environmental training seminar or a similar training course currently approved by the IIC.