Agreement with the EU seeks to boost private investment

By BKM | Berkemeyer

Through a joint technical assistance agreement with the European Union and the World Bank, the government of Paraguay will strengthen the country's business climate, boost private investment and generate more employment. The signing of the document was made on June 3, 2019, with the presence of the Vice President of the World Bank for Latin America and the Caribbean, Axel van Trotsenburg, and the ambassador of the European Union in Paraguay, Paolo Berizzi.

The agreement will provide specific support for the Ministry of Industry and Commerce, the Ministry of Finance and the Ministry of Justice to incorporate technology and improve the competitiveness of small and medium-sized enterprises (SMEs), an economic sector identified as a priority by the governement, which currently is moving forward on the matter with two bills being studied in Congress about movable guarantees and bankruptcy law.

Van Trotsenburg highlighted the commitment of Paraguay to simplify procedures for SMES, although he mentioned the need to modernize regulations to ensure effective administrative requirements that reduce time and cost and help small and medium-sized enterprises become part of the formal economy. He also argued about the need of attracting private investment to improve overal investment climate. "International experience shows us that this is a continuous process in which all countries compete with each other to attract investment. I congratulate Paraguay for this beginning and encourage even more ambitious strategies when thinking about how to improve competitiveness", Van Trotsenburg said.