OPEC Fund signs off on $430m loan to Paraguay’s Banco Sudameris

The OPEC Fund for International Development has signed a $30m loan agreement under its Food Security Action Plan with Banco Sudameris in Paraguay. Responding to the current disruptions in global food supplies 40 percent of the loan will be allocated to support farmers and agribusinesses. Paraguay is a significant producer and exporter of agricultural and livestock products such as soy, wheat, corn and meat.

The remaining 60 percent of the loan will finance small and medium-sized enterprises (SMEs) in order to promote job creation and economic recovery from the disruptions caused by the COVID-19 pandemic. In Paraguay, SMEs are the building blocks of the economy, representing 97 percent of all businesses and creating more than three quarters of employment.

OPEC Fund director-general Dr Abdulhamid Alkhalifa said: “Agribusiness is a vital sector for economic stability and employment in Paraguay. Building on our partnership with Banco Sudameris we facilitate SMEs’ access to funds, addressing liquidity needs, protecting jobs and ensuring business continuity. Safeguarding food security and increasing resilience of the agriculture sector is a key priority for the OPEC Fund.”

This is the second facility the OPEC Fund has extended to Banco Sudameris. A previous $20m loan in 2018 was on-lent to 90 SMEs in agriculture, livestock and industry services.