OPEC Fund provides $30 million loan to Paraguayan farmers and businesses

Under its Food Security Action Plan, the OPEC Fund for International Development (OFID) has signed a $30 million loan agreement with Banco Sudameris S.A.E.C.A. in Paraguay. Farmers and agribusinesses will receive 40 percent of the loan in response to disruptions in global food supplies. Paraguay is one of the world’s largest producers and exporters of agricultural and livestock products, such as soy, wheat, corn, and meat.

In order to promote job creation and economic recovery after the COVID-19 pandemic, 60 percent of the loan will be used to finance small and medium-sized enterprises (SMEs). More than three quarters of Paraguay’s jobs are created by SMEs, which represent 97 percent of all businesses.

Banco Sudameris is receiving its second facility from the OPEC Fund. Ninety SMEs in the agricultural, livestock, and industrial services sectors received a $20 million loan in 2018. There are several Sustainable Development Goals (SDGs) aligned with the new loan agreement – SDG 1: No poverty; SDG 2: Zero hunger; SDG 8: Decent work and economic growth; and SDG 10: Reduced inequality.