Asuncion, IP Agency.- The Agricultural Credit Facility (CAH) works with the goal of reaching 480 billion guaraníes in loans, thus demonstrating the institution’s commitment to the economic development of Paraguayan entrepreneurs.
“We are focused on strengthening our clients, offering them tools that allow them to grow and sustain themselves over time,” said María del Carmen Meza, member of the CAH Board of Directors, on the program Tribuna on Paraguay TV.
In 2024, the institution granted 27,000 loans to micro-entrepreneurs, with a total disbursement of 325 billion guaraníes. The goal is to exceed those numbers, he said.
“The CAH offers a wide range of financial products designed to serve various sectors, not only in the agricultural sector, but also in areas such as services, rural tourism, and youth entrepreneurship,” Meza said.
“We seek to be a driving force for inclusive development, providing access to credit to those who need it most,” he said.
With 80 service points distributed across all departments of the country, the CAH has more than 91,000 clients, of which 45% are women.
As for institutional indicators, he stressed that the CAH has achieved a remarkable loan repayment rate, reaching 97%, which demonstrates the trust and responsibility of the beneficiaries.
“We are proud to see how our clients not only access credit, but also fulfill their commitments, which in turn allows us to continue growing as an institution,” said Meza.
Finally, he highlighted the recent inclusion of loans for the purchase of machinery, rural tourism and young people, as part of the CAH strategy to diversify its services and adapt to the changing needs of entrepreneurs.
“Our goal is to be strategic allies in the development of their projects, providing accessible financial solutions adapted to each reality,” he concluded.
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2024-09-08 07:24:00
Table of Contents
Agricultural Credit in Paraguay: Boosting Economic Development
Paraguay has long recognized the importance of agricultural credit in promoting economic development. As early as the nineteenth century, the government acknowledged the need for special credit facilities to support agriculture [1]. This commitment has continued to grow, with institutions like the Agricultural Credit Facility (CAH) playing a crucial role in providing financial support to entrepreneurs in the agricultural sector.
The Agricultural Credit Facility (CAH)
The CAH is a key player in Paraguay’s agricultural credit landscape. With a goal of reaching 480 billion guaraníes in loans, the institution has demonstrated its commitment to the economic development of Paraguayan entrepreneurs. In 2024, the CAH granted 27,000 loans to micro-entrepreneurs, disbursing a total of 325 billion guaraníes. The institution aims to exceed these numbers, providing financial support to even more entrepreneurs
.
The CAH offers a wide range of financial products designed to serve various sectors, including the agricultural sector, services, rural tourism, and youth entrepreneurship. This diversified approach enables the institution to cater to a broad range of clients, promoting inclusive development and providing access to credit to those who need it most.
Institutional Indicators
The CAH has achieved impressive institutional indicators, with a remarkable loan repayment rate of 97%. This high rate demonstrates the trust and responsibility of the beneficiaries, highlighting the institution’s success in promoting sustainable economic growth.
Access to Credit
The CAH has 80 service points distributed across all departments of the country, providing easy access to credit for entrepreneurs. With over 91,000 clients, of which 45% are women, the institution has made significant strides in promoting financial inclusion. By providing access to credit, the CAH enables entrepreneurs to grow and sustain themselves over time, contributing to Paraguay’s economic development.
Agricultural Credit Project
In addition to the CAH, Paraguay has also implemented the Agricultural Credit Project, which aims to increase agricultural output, including the production of export crops in which Paraguay enjoys a comparative advantage [3]. This project is a testament to the government’s commitment to supporting the agricultural sector, which is critical to the country’s economic growth.
Conclusion
Agricultural credit plays a vital role in promoting economic development in Paraguay. Institutions like the CAH and projects like the Agricultural Credit Project are essential in providing financial support to entrepreneurs in the agricultural sector. By promoting access to credit, these initiatives enable entrepreneurs to grow and sustain themselves over time, contributing to Paraguay’s economic growth and development.
References:
[1] World Bank. (n.d.). Agricultural credit in Paraguay.
[2] Banque Mondiale. (n.d.). Agricultural credit in Paraguay.
[3] Banco Mundial. (n.d.). Paraguay – Agricultural Credit Project.
Agricultural Credit in Paraguay: Boosting Economic Development
Paraguay has long recognized the importance of agricultural credit in boosting economic development, particularly in the rural areas where farming and agriculture are the primary sources of income. The country has implemented various initiatives to provide access to credit for farmers, micro-entrepreneurs, and rural communities, with the goal of increasing agricultural output and improving the overall economy.
One such initiative is the Agricultural Credit Facility (CAH), which has been working towards reaching 480 billion guaraníes in loans to support the economic development of Paraguayan entrepreneurs. The CAH has been focused on strengthening its clients by offering them tools that enable them to grow and sustain themselves over time. In 2024, the institution granted 27,000 loans to micro-entrepreneurs, with a total disbursement of 325 billion guaraníes, and the goal is to exceed these numbers in the future.
The CAH offers a wide range of financial products designed to serve various sectors, not only in the agricultural sector but also in areas such as services, rural tourism, and youth entrepreneurship. The institution seeks to be a driving force for inclusive development, providing access to credit to those who need it most. With 80 service points distributed across all departments of the country, the CAH has more than 91,000 clients, of which 45% are women.
The CAH has achieved a remarkable loan repayment rate, reaching 97%, which demonstrates the trust and responsibility of the beneficiaries. This high repayment rate allows the institution to continue growing and providing more financial solutions to its clients. The CAH has also recently included loans for the purchase of machinery, rural tourism, and young people, as part of its strategy to diversify its services and adapt to the changing needs of entrepreneurs.
International organizations have also recognized the importance of agricultural credit in Paraguay’s economic development. The World Bank, for example, has supported projects such as the Paraguay Agricultural Credit Project, which aims to increase agricultural output, including the production of export crops in which Paraguay enjoys a comparative advantage[[[2]][[[3]]. The project also seeks to improve the access of small and medium-sized farmers to credit and other financial services.
Another example is the Directed Agricultural Credit in Paraguay, an evaluation of a project of international cooperation under the terms of agreement No ATN/SF-1220-VA, which has been implemented to improve the country’s agricultural sector[[[1]].
agricultural credit plays a vital role in Paraguay’s economic development, particularly in the rural areas where farming and agriculture are the primary sources of income. Initiatives such as the CAH and international projects supported by organizations like the World Bank are essential in providing access to credit for farmers, micro-entrepreneurs, and rural communities, and ultimately boosting the country’s economy.
References:
[1] Directed agricultural credit in Paraguay : an evaluation description of a project of international cooperation under the terms of agreement No ATN/SF-1220-VA.
[2] Paraguay – Agricultural Credit Project (Inglés) The proposed project’s overall purpose is to increase agricultural output, including the production of export crops in which Paraguay enjoys a comparative advantage.
[3] Paraguay – Agricultural Credit Project (Inglés) The proposed project’s overall purpose is to increase agricultural output, including the production of export crops in which Paraguay enjoys a comparative advantage.
