IDB and IMF will strengthen cooperation in Paraguay for environmental and sustainable development initiatives

Asuncion, IP Agency.- The Inter-American Development Bank (IDB) and the International Monetary Fund (IMF) announced that they will strengthen their cooperation for initiatives in the region. In the case of Paraguay, the collaboration will focus on environmental projects, sustainable development and the State’s structural reform program.

In a Press releaseThe IDB reported that there will be greater coordination with the Fund in the implementation of the Resilience and Sustainability Service (SRS), in the monitoring of macroeconomic policies and programs financed with credit from the multilateral bank.

In the specific case of Paraguay, both organizations will work together on climate change adaptation and mitigation reforms within the Resilience and Sustainability Service Agreement (SRS), through which Paraguay accessed US$ 100 million in financing.

They will also cooperate on technical assistance between the Paraguayan Government and the IMF for the Policy Coordination Instrument (PCI), a support plan that will be implemented until November 2024, with the aim of ensuring macroeconomic stability and resilience, improving productivity and fostering growth, and improving social protection and inclusion.

The IDB will support the implementation of State reforms within this coordination instrument.

Recovery of the Ypacarai Lake basin

Finally, cooperation between the agencies will include the IDB Clima project, a pilot program in Paraguay that will finance the recovery of the Ypacarai Lake basin, and will complement the objectives of the IMF’s SRS.

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

The director of the International Monetary Fund (IMF), Kristalina Georgieva, and the president of the IDB, Ilan Goldfajn, will share an agenda of meetings with authorities, representatives of the private sector and a discussion on economic perspectives in Paraguay this Tuesday, July 23.