Asunción, Agencia IP.- The World Bank will provide 2 billion dollars for projects in infraestructure, health and education, and for private sector development, which will include micro, small and medium-sized enterprises (MSMEs) and small farmers for the generation of quality jobs.
This was announced by the President of the World Bank Group, Ajay Banga, after a meeting with Paraguay’s President, Santiago Peña, at the Government Palace as part of his official visit to Paraguay.
At the conclusion of the meeting and during a press conference, the Minister of Economy and Finance, Carlos Fernández Valdovinos, stated that the World Bank has been a strategic partner of Paraguay since its founding. The first loan granted to the country in 1951 was aimed at the agricultural sector. This partnership later expanded to other priority areas, such as road infrastructure, health, and education.
«But the World Bank is not just an entity that provides financing to countries; it also possesses a wealth of knowledge, which is crucial for countries like ours,» said Fernández Valdovinos.
In this context, the Minister emphasized that over the past 50 years, Paraguay has undergone significant change and is now experiencing very positive levels of development.
In line with the Minister’s comments, the President of the World Bank, Ajay Banga, emphasized that the institution can contribute to Paraguay with a range of technical knowledge to support the country’s policies.
«Paraguay is a country with a strong macroeconomy. It has achieved investment grade, which means that the foundation is well in place to move forward,» he added.
Creation of quality jobs
He commented that the World Bank’s priority, along with the government’s, is to create jobs that dignify Paraguayans through a strategic alliance with the private sector.
«The government must focus on creating the right infrastructure, whether it be roads, health, or laws and regulations that allow the private sector to develop properly and, in turn, create the quality jobs that are so needed,» he emphasized.
In this regard, he announced that they are planning a 2 billion dollar investment to enhance the country’s existing infrastructure, including roads and energy, while also supporting the private sector so that it can grow and generate quality jobs.
«This is not just about large companies. The President and his team also intend to focus on small farmers and small, medium, and micro enterprises to encourage them to create jobs and have dignified working conditions,» he explained.
He also mentioned the possibility that the World Bank’s International Finance Corporation could raise funds to support private-sector investment projects. The country has the necessary maturity for us to provide this support, he stated.
«We are looking at a 20-year horizon»
In the same vein, he mentioned that the Inter-American Development Bank (IDB) plans to provide a cooperation and support plan for Paraguay. The goal is for both organizations to establish synergy in alignment with the country’s strategy.
«We are looking at a 20-year horizon, and the priority is to support infrastructure, specifically roads. In this regard, we see that not only roads are important. We are also looking at strengthening rural roads that could benefit the sectors we’ve discussed and reinforcing the energy sector. Capacity is increasing, and therefore, we are analyzing what other types of energy can be developed here in Paraguay, including the possibility of nuclear reactors,» he commented.
Finally, the World Bank president highlighted the importance of investing in early childhood, particularly in education.