The first payment of $100 million to the Paraguayan government was approved by the International Monetary Fund (IMF), ABC reported on June 28.
It is reported to be the first installment of a loan granted last December under the Sustainability and Sustainability (SRS) program, which includes the Paraguayan government’s commitment to climate-related reforms.
The Ministry of Economy and Finance (MEF) would have issued an announcement according to which the IMF board of directors approved the evaluation carried out on Paraguay’s economy and its compliance with the agreed reforms.
An IMF technical mission was in Paraguay from April 29 to May 8 to assess the economy as part of Article IV consultations. The results of the economic evaluation were presented to the Fund’s Board of Directors, which reviewed the issue and gave its approval.
The report highlighted “The government’s efforts to maintain macroeconomic stability and progress in approving necessary structural reforms that have been delayed”According to the IMF, these efforts have resulted in sustained economic growth, low inflation, positive export performance, and a stable and profitable banking system.
The funds mentioned are part of the 400 million dollars requested by the government of Santiago Peña and provided by the IMF last December with the commitment to climate reforms.
According to the Ministry of Economy, the loan was granted under very favorable financial conditions: a term of 20 years, including a grace period of 10.5 years, and an interest rate that is currently around 5.46% per year.
The IMF emphasizes that the Paraguayan government has reaffirmed its commitment to continue with the reforms: “Highlighted priorities include restoring fiscal margins, sustaining the government employees’ pension fund, and improving oversight of state-owned enterprises to limit unforeseen risks.”.
The report also says that a decisive fight against corruption and a reduction in the informal sector are necessary to minimize reputational risks and attract more investments, especially in green projects. The IMF believes that reform measures aimed at promoting sustainable growth will be essential to reduce Paraguay’s vulnerabilities.
Source: Rossa Primavera
I am Michael Melvin, an experienced news writer with a passion for uncovering stories and bringing them to the public. I have been working in the news industry for over five years now, and my work has been published on multiple websites. As an author at 24 News Reporters, I cover world section of current events stories that are both informative and captivating to read.