Published and draft legislation - Paraguay

Greater access to finance for small entrepreneurs

Bill authorising the Fondo Ganadero to issue bonds

The Fondo Ganadero de Paraguay (FG) is a State-owned financial institution for technical assistance and development. Its main purpose is to provide financial and technical help to the country’s livestock farmers.

Purpose

The bill authorises FG to issue bonds in order to reinvest the proceeds in loans exclusively for financing productive activities of micro, small and medium sized enterprises in the private livestock sector.

The redemption date for the bond issue is three years. Microcredit may be granted to micro livestock enterprises that may not be for more than 25 times the prevailing minimum wage (USD 10,400); for small and medium sized enterprises, it may not be more than 2% of the minimum capital for financial institutions (USD 67,000).

Access to the capital markets

This bill gives the FG the possibility of raising low-cost funding on the capital markets at rates below those offered by banks, so that this can be reinvested by placing loans under favourable conditions for microentrepreneurs.