Asuncion, IP Agency.- With the achievement of investment grade, a window of opportunity opens for Paraguay and encourages it to continue growing, says former Finance Minister César Barreto. “A dynamic economy is the only way to generate job opportunities, employment and better income for workers,” he emphasizes.
The officialization of Paraguay’s investment grade rating by the Moody’s risk rating agency “is an important milestone for the economic development process that our country has been experiencing for two decades,” the former minister told IP.
He stressed that Paraguay has been consolidating solid economic policies that have become state policies, after having been supported by several governments, even from different political parties.
In concrete terms, he explained that the investment grade implies that the Paraguayan State will pay lower costs for its debt and will be able to expand its issuance of guaraní bonds internationally.
“This means cost savings that the State can use to invest in improving public services for citizens,” he said.
It also means that financial institutions will be able to raise capital abroad at lower costs to transfer it in the form of loans so that local companies can invest, and that multinational companies can obtain cheaper financing for their projects carried out in the country, he stressed.
According to Barreto, this also means a very important vote of confidence from the rating agency towards the country and the Paraguayans and that in order to consolidate this investment grade and even improve it in the coming years, it is necessary to maintain good economic policies.
In this regard, he pointed out the need to carry out structural reforms to improve the quality of public services and maintain a prudent pace of borrowing in line with the limits provided for in the Fiscal Responsibility Law.
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2024-07-30 15:37:32