With three new bills, the Government aims to improve the country's business environment and motivate entrepreneurs and investors alike. In fact, it plans to increase the contribution of micro, small and medium-sized enterprises (MSMEs) to the national Gross Domestic Product (GDP) and improve the country's ranking in the World Bank's business climate report, in which Paraguay has slipped to 108th place.

The three projects are:

1. Law of Movable Guarantees: facilitates the access of MSMEs to credit, making the type of goods used as collateral more flexible and adopting a single system for the registration of movable guarantees to be administered by the Central Bank of Paraguay.

2. Insolvency Resolution Law: prioritizes procedures aimed at the recovery of companies considered viable that are experiencing economic or financial difficulties. In other words, it opts for reorganization instead of liquidation, providing protection to employment and the usefulness of productive assets.

3. Law creating the Simplified Joint Stock Company (EAS): creates a new type of legal entity with the intention of simplifying management, reducing costs and promoting the formalization of companies. This new type of company may be incorporated online and may be opened by a single partner -who will own all the shares- in order to attract funds from investors and promote associativity.

The latter project was worked on jointly with specialized advisors from the law firm Vouga Abogados, in addition to professionals from different institutions such as the Ministry of Industry and Commerce, the Ministry of Finance, the Ministry of Justice, the Central Bank and the World Bank.

These regulations will reduce bureaucratic and costly procedures to simplify the opening of businesses. In addition, they will be key elements to facilitate access to credit for MSMEs, considering that this group represents more than 2 million Paraguayans.

Sources: Diario La Nación y Ministerio de Industria y Comercio.