AFD reduces its rates to promote access to credit and stimulate investments in the country

Photo Illustration/ MIC

Asunción, IP Agency.- The Financial Development Agency (AFD) made official the reduction of its interest rates, granted to Intermediary Financial Institutions (IFIs) for several of its credit products; in order to promote access to credit and stimulate investments in the country.

The main reductions occur in products destined for investment projects, MSMEs, loans for women and for higher education, as reported by the AFD.

Likewise, the decreases occurred, in local currency, for the ProMipymes Lotes and ProMipymes Lotes Mujer products (-2.00%) to encourage investment in MSMEs with high social impact, especially those led by Paraguayan women, as a tool effective financial inclusion and to promote its growth.

For its part, with the ProCrecer product aimed mainly at large-scale projects that generate jobs, there was a reduction of – 1.35% points in order to encourage Paraguayan investments.

On the other hand, with regard to foreign currency, the rate reductions occur mainly for loans intended for livestock projects, through its ProCoop and Procampo credit products (-0.75%), which seek to provide incentives. that encourage modernization, expansion and improved profitability in this sector, which in turn can contribute to the growth and sustainability of the livestock industry.

Likewise, there was a rate reduction on loans for higher education of -0.50% through the ProEduc product, which will generate a positive and significant impact by facilitating access, stimulating personal and professional development, promoting social equity. , with which the AFD estimates that it can benefit both individuals and society as a whole by promoting investment in human capital.

These actions are launched as part of an institutional policy that occurs in a context of financial stability, through adequate risk management that seeks to promote investments, as it is a key driver of long-term economic growth.

With these decisions, the AFD board aims to promote new businesses that generate more jobs, increase productivity and strengthen the competitiveness of the economy in general.

The Development Financial Agency is the only Second-Tier Public Bank that operates in Paraguay, its purpose being to grant loans to complement the funding structure of first-tier financial intermediation entities, in order to enable the execution of short-term programs. , medium and long term through: banks, cooperatives and finance companies that operate with the AFD.