The World Bank approved $150 million in financing to help Paraguay boost private sector growth and create more jobs by cutting red tape for businesses and promoting public-private partnerships, based on the statement released by the organization.
The Development Policy Loan focuses on two main areas: making it easier for companies to start and grow, and increasing private investment through better partnerships between government and business. The 17.5-year loan includes a three-year grace period to give Paraguay time to implement reforms before repayment begins.
Paraguay’s economy has struggled to attract enough private investment and create quality jobs for its growing population. Many small and medium businesses face bureaucratic hurdles that make it hard to start or expand operations. The country also needs more infrastructure projects and sustainable investments to compete regionally and provide better opportunities for workers.
“This operation underscores our strong partnership with Paraguay and our shared commitment to unlock the country’s economic potential through private sector growth,” said Marianne Fay, World Bank Division Director for the Southern Cone.
The program targets micro, small, and medium-sized enterprises that face the biggest challenges in accessing markets and financing. It will also strengthen competition laws and improve Paraguay’s ability to attract both domestic and foreign investment.
The reforms should make Paraguay more attractive to investors while helping existing businesses grow and hire more workers. Better enforcement of competition rules will create fairer markets while public-private partnerships can fund infrastructure projects the government can’t afford alone. The program aims to create “more and better jobs” across different sectors of the economy.
The World Bank says it remains committed to working with Paraguay to ensure growth benefits reach all segments of society, not just wealthy areas or industries.
