The Development Finance Agency (AFD) has published new interest rates for 2023 for its credit products in order to maintain the availability of funds over the long term. They noted that the increases were made in line with the increased cost of financing around the world.
In line with its strategic vision to contribute to the development and economic recovery of the country, the Development Finance Agency is making an effort to maintain the availability of long-term funds and is introducing new interest rate adjustment for new credit applications that have been introduced since then. January 2023.
They pointed out that this measure is being implemented at a lower rate than the interest rate hikes that occurred in the national and international financial system by financiers. In this sense, they explained that the adjustments were made in response to the increase in the cost of financing globally, a phenomenon that has been occurring since the beginning of 2021.
However, they considered that given AFD’s role as a development bank, it has always sought to make the minimum necessary adjustments to ensure its financial sustainability, which in turn has less impact on investments, allowing resources to continue contributing to economic recovery. from the country.
They indicated that within the product network, it is My First Home that is characterized by the lowest adjustment, at 5% in guarani and 6% in dollars, considering that the housing sector has a significant impact on job generation and family income. Under this product, US$ 146 million was approved in 2022 to finance 3,217 homes, which had a positive impact on the lives of about 40,900 Paraguayan families with direct and indirect jobs.
They pointed out that in recent years, when economic activity was severely affected, the French Development Agency played an important role in countering cyclical fluctuations, as it reached record levels in its locations, benefiting a very large number of families and creating thousands of jobs.
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They added that by 2023, credit products offered by banks are designed with the aim of generating greater diversification in credits, allowing financing new destinations such as franchises, and the possibility of allocating a percentage of the global amount of the loan to operating capital, in addition to financing university studies, which will be allowed Also under Proeduc Product, among others.
Another innovation that was incorporated this year was the establishment of differentiated rates to support small and medium-sized businesses for women entrepreneurs, which is a key sector to support the recovery of the economy, given its great social impact. They stated that through these actions, the AFD shows its commitment to development in order to continue financing investments that have a social and economic impact on society.
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