Asunción, IP Company.- The Minister of Financial system and Finance, Carlos Fernández Valdovinos, emphasised that if there is no such thing as a exterior shock, the Paraguayan financial system will as soon as once more be the quickest rising in South America, in 2024.
This was said throughout a convention organized by the School of Graduates in Financial Sciences of Paraguay, the place Fernández Valdovinos addressed essential subjects such because the influence of the brand new Itaipu charges and the financial achievements of the Authorities.
He additionally highlighted the dynamism of the Paraguayan financial system, the management of inflation, the solidity of the monetary system and the advances in fiscal coverage and de-dollarization of debt.
He famous that the expansion projection for 2024 stays at 3.8%, with expectations of an upward revision by the Central Financial institution.
“If there is no such thing as a exterior shock, we must always have a 12 months wherein the Paraguayan financial system will as soon as once more be the quickest rising in South America,” he said.
At one other time, he famous that year-on-year inflation reached 4% in April, with an accumulation of two.8%. He assured that for this 12 months inflation won’t be an issue, supported by the entire normalization of financial coverage in Paraguay.
The nation’s monetary system, in line with Fernández Valdovinos, is stable and worthwhile, with capital ranges nicely above authorized minimums and robust credit score progress. “The monetary system is heading in the right direction,” he said, highlighting the significance of preserving this stability.
Tax income and monetary deficit
Then again, it reported a 20% progress in year-on-year tax revenues and a historic discount in the usage of these revenues to finance salaries. The creation of the Ministry of Financial system, from the merger of three establishments, generated financial savings of 9 million {dollars} this 12 months, demonstrating an enchancment within the effectivity of public spending.
Fernández Valdovinos additionally spoke concerning the fiscal deficit, which is at 3.4%, and highlighted the necessity for a fiscal adjustment that doesn’t hurt the financial restoration. As well as, he talked about the gradual de-dollarization of public debt and the seek for revolutionary financing devices, such because the IDB Local weather program and collaboration with the IMF for environmental sustainability and resilience.
Itaipu assets can be used transparently
On this level, the Secretary of State valued the achievements obtained within the negotiation, which permit the direct sale of Paraguayan vitality to the Brazilian market. The primary provide from the Brazilian authorities was 9 USD, whereas Paraguay managed to lift this determine to 19.28 USD, producing important revenue for social investments, which can attain 650 million {dollars} in three years.
Fernández Valdovinos confused that stated revenue can be utilized in a prudent and clear method.
In one other a part of his speech, the minister highlighted the structural reforms carried out, such because the creation of the Ministry of Financial system and Finance, the Nationwide Tax Income Directorate, and the Superintendence of Pensions, amongst others.
Lastly, he defined that, though there are nonetheless reforms to be made, these measures can be basic for the nation’s financial improvement within the medium time period.
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2024-05-23 22:25:49