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VIENNA – Under its new Food Security Action Plan, the OPEC Fund is providing Banco Sudameris S.A.E.C.A. in Paraguay with a $30 million loan. Responding to the disruptions in global food supplies 40 percent of the loan will be allocated to support farmers and agribusinesses. Paraguay is a significant producer and exporter of agricultural and livestock products such as soy, wheat, corn and meat.
The remaining 60 percent of the loan will finance small and medium-sized enterprises (SMEs) to promote job creation and economic recovery from the disruptions caused by the COVID-19 pandemic. In Paraguay, SMEs are the building blocks of the economy, representing 97 percent of all businesses and creating more than three-quarters of employment.
OPEC Fund Director-General Dr. Abdulhamid Alkhalifa said, “Agribusiness is a vital sector for economic stability and employment in Paraguay. Building on our partnership with Banco Sudameris we facilitate SMEs’ access to funds, addressing liquidity needs, protecting jobs and ensuring business continuity. Safeguarding food security and increasing resilience of the agriculture sector is a key priority for the OPEC Fund.”
This is the second facility the OPEC Fund has extended to Banco Sudameris. A previous US$20 million loan in 2018 was on-lent to 90 SMEs in agriculture, livestock and industry services. The new loan agreement is aligned with several of the United Nations Sustainable Development Goals (SDGs) – SDG 1: No poverty; SDG 2: Zero hunger; SDG 8: Decent work and economic growth; and SDG 10: Reduced inequality.