US$19 Million IDB Loan To Boost Paraguay’s Foreign Investment And Trade Efficiency

Paraguay is closing 2025 with a series of strategic advances in economic policy, international integration and digital modernisation. Those measures are backed by key institutions such as the Inter-American Development Bank (IDB), the Ministry of Economy and Finance (MEF) and the Ministry of Health. The initiatives, according to the Paraguayan government, reflect a country that is consolidating its long-term development agenda, improving competitiveness, and preparing for future challenges.

IDB loan to boost foreign investment and trade

In December 2025, the IDB approved a US$19 million loan aimed at enhancing Paraguay’s presence in international markets. The funds will be channelled through the Ministry of Industry and Commerce (MIC) to strengthen investment promotion tools, support the internationalisation of MSMEs and modernise border management. Particularly at the new International Integration Bridge between Presidente Franco and Foz do Iguaçu.

The programme includes the creation of a Single Window for Investment Attraction (VUAI), improvements to the Country Brand. Additionally, new business development services to help companies access foreign markets. The initiative is expected to benefit more than 600 exporting companies and attract nearly 190 new foreign firms to Paraguay.

One of the most significant impacts will be the improvement of border efficiency. With an estimated 135,000 import and export vehicles crossing annually, the project aims to reduce border processing times from 50 to 25 hours, significantly lowering logistical costs. These efforts align with Paraguay’s ongoing preparations for eventual accession to the OECD, with the IDB supporting institutional reforms and a more favourable investment climate.

Paraguay presents its 2025–2026 roadmap

In parallel, the Ministry of Economy and Finance, the Central Bank of Paraguay and the IDB organised the conference “Paraguay: Evaluation 2025 and Outlook 2026,” open to the public and held at the BCP Cultural Centre. The event brought together leading authorities, including Minister Carlos Fernández Valdovinos, BCP President Carlos Carvallo and IDB Vice-President Jordan Schwartz.

During the session, experts reviewed the country’s economic performance throughout 2025 and outlined projections for 2026. The discussions focused on institutional strengthening, sustainable growth strategies and the key factors shaping decision-making for both public and private sectors. The conference aimed to offer citizens and specialists a clear understanding of Paraguay’s macroeconomic direction as it enters a new fiscal year.

Paraguay prepares for Conectatón 2026

Beyond the economic sphere, Paraguay is also stepping up its efforts in digital healthcare interoperability. The Ministry of Health, through its Directorate of ICT, successfully hosted the Pre-Conectatón Paraguay 2025. This is a technical gathering involving more than twenty institutions from the national health ecosystem.

Supported by the IDB and PAHO/WHO, the meeting focused on developing national capacities for the 2026 Conectatón and strengthening standards for sharing clinical information. Participants included public and private hospitals, academic institutions, technological firms, the Social Security Institute and several health programmes nationwide.

These efforts reinforce the country’s commitments to digital transformation and pave the way for an interoperable electronic health record system. An essential step for improving patient care and modernising public health services.

IDB: Highlighting Paraguay’s potential

As Paraguay progresses on multiple fronts, Edna Armendáriz, the IDB’s representative in the country since 2021, prepares to conclude her mission. After nearly three years, she expressed deep appreciation for Paraguay’s warmth and hospitality, praising the professionalism of public and private institutions.

Armendáriz emphasised the promising outlook for Paraguay, noting that the country has the conditions to diversify its economy and strengthen industry over the coming decade. She highlighted programmes related to potable water and sanitation especially in rural and indigenous communities, as some of the most impactful projects of her tenure.

Returning soon to Washington, D.C., where she will continue her work on fiscal management, she leaves Paraguay with positive expectations for its development trajectory. She is asserting that the combination of talent development, technology adoption and public-private collaboration will be essential to sustain growth, reduce poverty and enhance climate resilience.

Read more: Paraguay To Strengthen Its Tax And Customs Administration With Support From The IDB.

IDB Meeting.