CAF supports investment trust fund in Paraguay

By BKM | Berkemeyer

The Development Bank of Latin America (CAF) is analyzing the creation of an investment trust fund in Paraguay, one of three projects that also includes housing development and facilitating border crossing

The executive president of CAF, Luis Carranza, has repeatedly stressed the importance of consolidating macroeconomic fundamentals in order to further improve the quality of life of the population and to reach political consensus to promote a productivity pact that drives sustainable growth. "Paraguay faces the short-term challenge of driving higher and more sustainable growth that accelerates convergence and ensures greater well-being for its population, while maintaining the sound macroeconomic fundamentals of recent decades. This demands reforms on various fronts: The Consolidation of Macroeconomic Sustainability, the Challenge of Productivity, and the Institutionality and Capabilities of the State", stated Carranza. 

Among the recommendations made by CAF to Paraguay is expanding the tax base to increase fiscal funds to improve the provision of public goods and close infrastructure gaps; working on the agrobusiness value chain, especially in terms of food production; improving the business environment to attract more investment; strengthening institutions; transparency, and training of public officials.