Paraguay has become the first nation to take advantage of the co-financing model that seeks to enhance the participation of the Development Bank of Latin America (CAF) in local development projects. Last November 30, 2018, CAF -which was advised by Vouga Abogados- and the Regional Bank of Paraguay have signed a loan agreement in the amount of USD 120 million, which will be destined to the national agricultural and agro-industrial sector.
The loan will also be invested in the energy industry to promote its efficiency, as well as in the logistics, transportation and road infrastructure industries. The loan was granted in two tranches: the first -USD 28 million- for five years and the second -USD 92 million- for three and four years. The funds for the latter were provided by major international financial institutions.
This news was highlighted by Lex Latin, which emphasized the participation of national legal advisors in the process of negotiating and obtaining the loan (https://lexlatin.com/portal/noticias/banco-regional-de-paraguay-recibe-usd-120-millones-para-desarrollar-sector-agropecuario).
If you would like to know more about our advice on financing procedures, please do not hesitate to contact Cynthia Fatecha. cfatecha@vouga.com.py, Carlos Vouga cvouga@vouga.com.py and Georg Birbaumer gbirbaumer@vouga.com.py.
