BBVA Paraguay SME Partnership

inactive

The proposed operation includes a partial credit guarantee of up to 155.8 billion Guaraníes (“PYG”) to be issued in favor of the Instituto de Previsión Social (“IPS”). IPS will provide a loan to BBVA Paraguay (the “Guaranteed Loan”) for the guaranteed amount, the Inter-American Development Bank (“IDB”) and the Inter-American Investment Corporation (“IIC”) will grant a guarantee in favor of IPS covering the credit risk of BBVA Paraguay (Guarantee IDB/IIC) IPS under the Guaranteed Loan. The IPS disbursement will be made through a Trust Manager, Agencia Financiera de Desarrollo, through whom IPS will receive payments for the Guaranteed Loan. The Guaranteed Loan will have a term of up to five years, with two years of grace, and semi-annual amortization. The use of funds for the Guaranteed Loan will be to finance small and medium enterprises (“SMEs”) in the productive sector of Paraguay.