The World Bank Group has approved $150 million in financing for Paraguay to support the country’s efforts to improve its business environment, increase private investment, and promote job creation. The decision was made by the Board of Directors on August 8, 2025.
The Development Policy Loan (DPL) is structured around two main pillars. The first pillar focuses on implementing reforms that lower barriers for businesses to enter and grow in the market. The second pillar aims to boost private investment by encouraging the development of public-private partnerships, which are seen as important for long-term economic development.
“This operation underscores our strong partnership with Paraguay and our shared commitment to unlock the country’s economic potential through private sector growth,” said Marianne Fay, World Bank Division Director for the Southern Cone. "By strengthening the business environment, we are helping to build a more resilient economy, create more and better jobs, and lay the groundwork for inclusive growth and improved livelihoods for all Paraguayans."
The funding will support reforms designed to help micro, small, and medium-sized enterprises address key challenges. It will also enhance enforcement of competition laws and improve Paraguay’s capacity to attract both domestic and foreign investment in areas such as infrastructure and sustainable projects. The program is expected to lead to a better business climate, higher levels of private sector investment, sustained growth led by private enterprise, and more employment opportunities throughout Paraguay.
According to the World Bank Group, it remains committed to working with Paraguay so that progress from economic growth benefits people across all parts of society.
The loan is set up as a variable spread loan with a term of 17.5 years and includes a three-year grace period.