Paraguay to improve its logistics chain, commercial integration, and export diversification through IDB support

Asunción, Agencia IP.- Through credit support for policy reforms, Paraguay aims to reduce times and costs associated with foreign trade and diversify its exports through simplifying procedures, modernization of institutions, and sectorial planning.

The Inter-American Development Bank (IDB) approved a $100 million credit for the country, aiming to benefit stakeholders in the logistics chain through improvements in regulatory processes and institutional management.

Micro, small, and medium-sized enterprises (MSMEs) will also benefit by gaining greater access to international markets and reducing processing times and costs through digitizing and simplifying processes, reported the multilateral organization.

It also notes that women-led companies will be direct beneficiaries, and actions will be implemented for gender inclusion in the export sector.

Furthermore, the country’s population will be an indirect beneficiary with reduced times and costs associated with foreign trade, export diversification, and the planning of resilient infrastructure and logistics services.

The loan approved by the IDB board at the end of January is the first of two consecutive credits, technically linked but financed independently.

With this, Paraguay will establish a National Logistics Council, modernize institutions related to foreign trade, support the digitization of the Ministry of Public Works (MOPC), and the institutional consolidation of the Investment and Export Network (REDIEX).

Additionally, it will strengthen regulation and policy instruments for the sustainability and decarbonization of the logistics sector, promote trade facilitation, export promotion, and foreign investment attraction, and improve intellectual property, competition, and the business climate.

The $100 million loan has a repayment term of 20 years, a grace period of 5 and a half years, and an interest rate based on SOFR.