IDB and World Bank Approve Over $279 Million in Financing to Strengthen Paraguay’s Investment Climate, Export Facilitation, and Logistics Infrastructure

The Inter-American Development Bank (IDB) has approved multiple loans totaling $129 million to enhance Paraguay’s external economic integration, investment attraction, and trade logistics. These include a $19 million loan aimed at boosting Paraguay’s international insertion by supporting investment promotion, export growth, and border management modernization. This program, led by the Ministry of Industry and Commerce (MIC), plans to reduce trade costs and processing times with Brazil, develop digital platforms such as the Single Investment Attraction Window (VUAI), advance country branding, and provide business development services to internationalize micro, small, and medium enterprises (MSMEs). A key component is the modernization of the coordinated border management model at the new International Integration Bridge linking Presidente Franco and Foz de Iguazú, which is expected to cut border crossing times from 50 to 25 hours and facilitate transit of roughly 135,000 export-import vehicles annually. Over 600 exporting firms and 190 new foreign companies will directly benefit from investment attraction services. An additional $10 million IDB loan will finance strategic planning, institutional capacity building, and modernization initiatives for investment promotion agencies, including a unified investor services window, a post-investment facilitation unit, integrated digital platforms, and the creation of an investment climate observatory targeting a substantial increase in foreign direct investment (FDI) participation in GDP and higher employment generation per investment dollar. Separately, the IDB approved a $100 million programmatic loan to improve logistics performance, regulatory processes, institutional planning, and facilitate trade while promoting sustainable infrastructure investment. This loan includes the establishment of a National Logistics Council, modernization of the Ministry of Public Works and Communications, and strengthening of the Investment and Export Network (REDIEX). Gender-inclusive measures targeting women-led exporters are also incorporated. The World Bank committed $150 million in Development Policy Loan financing to improve the business environment through reforms lowering entry barriers and bolstering private investment, with emphasis on micro, small, and medium enterprises and public-private partnerships. These coordinated efforts by the IDB and World Bank are expected to diversify Paraguay’s economic base, accelerate foreign investment inflows—currently concentrated in natural resources and agribusiness—enhance export competitiveness, and foster inclusive, sustainable growth. These financial packages feature long amortization periods, grace terms, and interest rates tied primarily to SOFR and LIBOR benchmarks.