Asunción, Agencia IP.- The board of directors of the International Monetary Fund (IMF) has approved the inclusion of Paraguay in the Sustainability and Resilience Service (SRS), an instrument that provides accessible financing for reforms aimed at promoting sustainable development and mitigating the effects of climate change.

According to the IMF statement, «Paraguayan authorities have committed to implementing an ambitious set of climate-related reforms consistent with the maximum financing access granted to the country.»

The reform plan will span two years and includes projects for climate risk containment in the financial sector, the expansion of the clean and renewable energy matrix, forest conservation, and the decarbonization of the productive matrix.

Paraguay is the first country in South America to be accepted to implement the SRS. It is also one of the few countries to access this IMF instrument’s maximum financing.

The maximum financing is 302.1 million Special Drawing Rights (SDR), the reserve asset created by the IMF whose value is based on five currencies: the U.S. Dollar, the Euro, the Chinese Renminbi, the Japanese Yen, and the British Pound.

IDB Climate

In addition to this IMF instrument, the Paraguayan Government has recently gained access to another unique financing instrument for sustainable projects.

The program from the Inter-American Development Bank (IDB) will finance the recovery of the Ypacaraí Lake basin.

The budget programming agreed upon between the government and the IDB consists of two lines of $309 million and $469 million, access to which is subject to the submission of sustainable development proposals in infrastructure, energy transition, and water resources management.

Countries must meet the IDB indicators to benefit from the 5% loan subsidy.

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