LatinNews Daily - 29 January 2024

In brief: Paraguay granted CAF credit line

*The Latin American Development Bank (CAF) has granted a credit line for US$50m to Paraguay’s financial development agency (AFD). In a statement, CAF said the credit was aimed at supporting Paraguay’s economic reactivation following the impact of the coronavirus (Covid-19) pandemic. The agreement was signed by CAF’s representative in Paraguay, Jorge Srur, and AFD president Stella Marys Guillén. The resources from the credit line will be used to finance working capital, investments, economic activities linked to the agro-industrial sector, foreign trade operations, and partial guarantees for AFD bond issues in a bid to consolidate small- and medium-sized businesses (SMEs) in Paraguay, particularly those related to the agricultural and agro-industrial production chain. CAF adds that the credit line allows disbursements in local currency through the CAF bond issuance programme (registered for an amount equivalent to US$75m). This allows the development bank to issue bonds at various terms, “contributing to expanding financing and investment tools and deepening the Paraguayan capital market”. In July 2023, CAF successfully carried out its first bond issue in guaraníes under this programme for an amount equivalent to US$10m.

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