Washington, D.C., August 8, 2025 - The World Bank Group (WBG) Board of Directors approved today US$150 million in financing for the Republic of Paraguay to support efforts to improve the business environment, increase private investment, and foster job creation in the country.
The World Bank's Development Policy Loan (DPL) is organized around two key pillars. Pillar 1 focuses on improving the business environment by implementing reforms to lower barriers to firm entry and growth. Pillar 2 aims to increase private investment by promoting the development of public-private partnerships, which are essential for supporting long-term development.
"This operation underscores our strong partnership with Paraguay and our shared commitment to unlock the country's economic potential through private sector growth," said Marianne Fay, World Bank Division Director for the Southern Cone. "By strengthening the business environment, we are helping to build a more resilient economy, create more and better jobs, and lay the groundwork for inclusive growth and improved livelihoods for all Paraguayans."
This financing will support critical reforms aimed at helping micro, small, and medium-sized enterprises overcome key challenges. It will also strengthen the enforcement of competition laws and improve Paraguay's ability to attract both domestic and foreign investment-especially in infrastructure and sustainable investments. The program is expected to improve the business environment, increase private sector investment and promote sustained private sector-led growth, ultimately contributing to the creation of more and better jobs across the country.
The World Bank Group remains dedicated to working closely with Paraguay to help the country achieve its development goals and ensure that the benefits of growth are felt across all segments of society.
The loan is a variable spread loan with a 17.5-year term, including a 3-year grace period.
