CAF doubles credit line of the Paraguayan Development Finance Agency (AFD) for SMEs

CAF, Development Bank of Latin America and the Caribbean, approved the renewal and increase of the revolving and uncommitted credit line in favor of the Agencia Financiera de Desarrollo del Paraguay (AFD) for up to US$100 million, doubling the current amount of US$50 million. This decision, taken by the institution's Board of Directors, seeks to strengthen economic development and productive investment in Paraguay, with special emphasis on financing for small and medium-size enterprises (SMEs).

The line of credit will be used to finance companies operating in productive sectors of the Paraguayan economy. Resources will be directed toward foreign trade operations, especially exports, working capital, investments in machinery and equipment focused on energy efficiency and green businesses, as well as economic activities related to agribusiness, such as logistics, transportation, and road infrastructure.

"This expansion of financing reflects our commitment to the sustainable development of Paraguay and the region. Through our strategic alliance with AFD, we are boosting the growth of Paraguayan SMEs and promoting projects that contribute to energy transition and environmental sustainability," said Sergio Díaz-Granados, CAF's executive president.

The operation also contemplates the issuance of CAF guarantees and sureties to support AFD with third parties, including partial guarantees for debt securities issues, as well as the subscription and purchase of green, social or sustainable bonds issued by the bank through private offerings.

In 2025, the use of the current line of credit has benefited 41 SMEs and 2 large companies, with disbursements distributed in the forestry (36%), commercial (11%), services (9%), industrial (4%), agroindustrial (1%) and other economic sectors (39%). With the increase in financing, it is estimated that approximately 100 additional SMEs will be served, with an average loan of US$500,000.

This new operation ratifies the priority agreed with the Government of Paraguay of increasing support to the private sector, with emphasis on entrepreneurs and small businessmen who have the greatest difficulties in accessing financing for their productive projects.