Source: Inter-American Development Bank
As part of the economic recovery promoted in the context of the COVID-19 pandemic, Paraguay will continue to support an increase in its Micro, Small and Medium Enterprises (MSMEs) productivity with a $15 million loan approved by the Inter-American Bank of Development (IDB).
The program aims to increase the training and technical assistance opportunities for MSMEs by providing them with Business Development Services (SDE, for its initials in Spanish); and increase the innovation effort of MSMEs through the provision of sectoral technological services.
It is expected that the increase in the supply of Business Development Services will be achieved through the creation of a national network of productivity centers. These private centers will promote growth and increase the productivity of MSMEs, mainly through services such as technical assistance and training.
In addition the MSME policies will also be strengthened, through the creation or reformulation of regulatory frameworks; the implementation of an observatory to monitor and analyze the sector; gender and environmental indicators monitoring system; and the training of people in policies and business development.
The program will contribute to generate data and evidence on the participation of women as entrepreneurs; as well as to identify the designs that favor their participation and actions to support the development of public policies oriented on this topic.
It is estimated that the program will benefit 8,500 MSMEs directly, and in addition, around 30 specialists and public officials will be trained on issues of support policies for MSMEs. It will also support at least five public agencies with responsibilities for regulations that affect business performance.
The 15 million IDB loan has an amortization period of 24 years, six and a half grace period and an interest rate based on LIBOR.
The Inter-American Development Bank is devoted to improving lives. Established in 1959, the IDB is a leading source of long-term financing for economic, social and institutional development in Latin America and the Caribbean. The IDB also conducts cutting-edge research and provides policy advice, technical assistance and training to public and private sector clients throughout the region.