The financial package includes US$15 million financed by IDB Invest and approximately US$5 million mobilized from institutional investors.

IDB Invest has announced a loan to Bancop, the bank owned by the main production cooperatives in Paraguay, for an amount of up to US$ 20 million to finance small and medium producers in the agricultural and livestock sectors of Paraguay, which will contribute to food security in the country and in the region.

The financial package includes US$15 million financed by IDB Invest and approximately US$5 million mobilized from institutional investors.

The project seeks to strengthen support for Bancop to expand access to financing for small and medium-sized Paraguayan producers in the agricultural and livestock sectors, thus promoting food production. It is anticipated that this initiative will contribute significantly to food security in the country.

The agricultural sector in Paraguay is key to the local economy, specialized in the production and export of soybeans, beef and their derived products.

From a broader perspective, the sector contributes one fifth of the Gross Domestic Product (GDP) where agriculture, meat, livestock, beverages and oils stand out. Agricultural activity in particular represented 11.3% of GDP in 2022.

Statistics position Paraguay as the largest exporter of organic sugar in the world, eighth in beef exports, fourth in soybean exports and in tenth position in terms of wheat.

The production cooperatives served by Bancop produce 90% of Paraguay's milk, 32% of wheat, 23% of meat and 13% of soybeans.

During recent years, climatic factors and global inflation have increased the risk of food insecurity in the region. Small and medium farmers, who face liquidity constraints, and the most vulnerable populations are most affected.

The operation with Bancop is expected to contribute to the Sustainable Development Goals (SDGs) of Decent Work and Economic Growth (SDG 8), Reduction of Inequalities (SDG 10) and Partnership to Achieve the Goals (SDG 17).