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- OPEC Fund provides loan under Food Security Action Plan to support farmers and businesses in Paraguay
OPEC Fund provides loan under Food Security Action Plan to support farmers and businesses in Paraguay
The OPEC Fund for International Development has signed a US$30 million loan agreement under its Food Security Action Plan with Banco Sudameris S.A.E.C.A. 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 US$20 million loan in 2018 was on-lent to 90 SMEs in agriculture, livestock and industry services. The new loan agreement is aligned with several of the United Nations’ Sustainable Development Goals (SDGs) - SDG 1: No poverty; SDG 2: Zero hunger; SDG 8: Decent work and economic growth; and SDG10: Reduced inequality.
About the OPEC Fund
The OPEC Fund for International Development (the OPEC Fund) is the only globally mandated development institution that provides financing from member countries to non-member countries exclusively. The organization works in cooperation with developing country partners and the international development community to stimulate economic growth and social progress in low- and middle-income countries around the world. The OPEC Fund was established by the member countries of OPEC in 1976 with a distinct purpose: to drive development, strengthen communities and empower people. Our work is people-centered, focusing on financing projects that meet essential needs, such as food, energy, infrastructure, employment (particularly relating to MSMEs), clean water and sanitation, healthcare and education. To date, the OPEC Fund has committed more than US$22 billion to development projects in over 125 countries with an estimated total project cost of US$187 billion. The OPEC Fund is rated AA+/Outlook Stable by Fitch and AA/Positive Outlook by S&P in 2021. Our vision is a world where sustainable development is a reality for all.