The World Bank will make approximately $2 billion available to the Paraguayan private sector, which will also include micro, small, and medium-sized enterprises (MSMEs), to strengthen the country’s existing infrastructure and thus generate quality jobs.
This was announced by World Bank Group President Ajay Banga after his meeting with Paraguayan President Santiago Peña at the Government Palace earlier today, during his official visit to Paraguay.
At the end of the meeting, Minister of Economy and Finance Carlos Fernández Valdovinos said in a press conference that the World Bank has been a strategic partner of Paraguay since its founding, with the first loan granted to the country in 1951, earmarked for the agricultural sector, and subsequently expanded to other priority areas such as road infrastructure, health, and education.
“But the World Bank isn’t just an entity that seeks financing for countries; it also has a wealth of knowledge, and that’s also crucial for countries like ours,” Fernández Valdovinos explained.
In this context, the head of the Ministry of Economy and Finance said that Paraguay has changed a lot over the past 50 years and is currently experiencing very positive levels of development.
In line with what Minister Fernández Valdovinos stated, World Bank President Ajay Banga emphasised that the organisation can provide Paraguay not only with loans but also with a range of technical expertise to strengthen its national policy.
“Paraguay is a country with a strong macroeconomy; it has achieved investment grade status, meaning the foundation is well established to be able to move forward,” he added.
The World Bank supports the creation of quality jobs
He commented that the priority of the World Bank, as well as that of the Government, is to create dignified jobs for Paraguayans through a strategic alliance with the private sector.
“The government must therefore focus on creating adequate infrastructure, whether roads, healthcare, as well as laws and regulations that allow the private sector to develop properly and thus create these much-needed quality jobs,” he stressed.
First and foremost, he announced that they are planning a $2 billion loan to strengthen the country’s existing infrastructure, including roads and energy, as well as to support the private sector so it can develop and, consequently, generate quality jobs.
“This isn’t just about big business. The president and his team also intend to focus on small farmers, small, medium-sized, and micro-enterprises, so they can create jobs and enjoy decent working conditions,” he explained.
At another point, he mentioned the possibility of the International Finance Corporation, a subsidiary of the World Bank, raising funds to support private sector investment projects. The country is mature enough for us to provide this assistance, he stated.
“We’re looking at a 20-year horizon”
Along the same lines, he announced that the Inter-American Development Bank (IDB) plans to provide a cooperation and support plan to Paraguay. The idea is for both organisations to establish synergy in the country’s strategy.
“We’re looking at a 20-year horizon, and the priority is to support infrastructure, meaning roads. In that sense, we see that not only roads are important; we’re looking at how to strengthen rural roads that can benefit the sectors already discussed. We’re also looking at strengthening the energy sector. Capacity is increasing, and that’s why we’re analysing what other types of energy can be developed here in Paraguay, including the possibility of nuclear reactors,” he commented.
In closing remarks, the head of the World Bank also emphasised the importance of continuing to invest in early childhood, particularly in education.
