The Paraguayan government launched the Paraguay Industrial program, with an initial fund of US$100 million, to finance the expansion and modernization of industrial companies. President Santiago Peña made the announcement during celebrations marking the 90th anniversary of the Paraguayan Industrial Union (UIP), an organization representing the country’s industrial sector.
Loans may reach US$2.5 million per company, with terms of up to 15 years and a grace period of up to three years. The final interest rate will be 10.5% per year for operations in guaraníes and 8.5% for contracts in dollars.
The funds may be used to purchase machinery and equipment, build or expand plants, incorporate technology and provide working capital — the latter limited to 20% of the amount invested in the project. The credit line will be operated by banks, finance companies and cooperatives authorized by the Development Finance Agency (AFD), which acts as Paraguay’s development bank.
The Ministry of Industry and Commerce (MIC), responsible for Paraguay’s policies for the sector, will assess project eligibility. The program prioritizes companies with export capacity in food and agribusiness, metalworking, textiles and clothing, wood and manufactured products.
Operations requiring additional guarantees may turn to the Guarantee Fund for Industry (FOGAIN). The mechanism provides state backing to companies that lack sufficient real-asset collateral to obtain credit, but it does not replace the risk assessment carried out by financial institutions.
Minister Marco Riquelme said the program seeks to address one of the main barriers to industrial expansion: access to long-term financing compatible with the time needed to build productive capacity and recover the investment. The announced conditions, however, do not mean that credit is automatic: each project will still depend on assessment by the intermediary institution and compliance with MIC criteria.
The government also submitted to Congress a bill to merge the MIC with the National Secretariat of Tourism (Senatur). The proposal, delivered to Congress President Basilio Núñez, would place industry, commerce, microenterprise and tourism policies under a single structure, while also incorporating the Investment and Export Network (Rediex), logistics connectivity and trade defense into the legislation.
The Executive argues that the reorganization could reduce administrative duplication and integrate the promotion of investment, exports and tourism. The merger still requires legislative consideration and approval, so it does not immediately change the structure of government.
Interested companies can review the terms and simulate financing on the official Paraguay Industrial platform. The program comes as Paraguay seeks to increase the share of manufactured products in its exports and reduce its dependence on raw materials, particularly through maquila and agro-industrial processing.