From the Association of Entrepreneurs of Paraguay (Asepy) and the Industrial Association of Confectioners of Paraguay (AICP) they requested the Minister of Finance Óscar Llamosas Díaz a guarantee of constitutionality to the clauses of the trust contract for financial support to MSMEs and formal independent workers .
In November 2021, the Government authorized the National Development Bank (BNF) a line of credit with a trust agreement as financial support for MSMEs and formal independent workers, with interest rates of 2 and 4%, with a term of up to seven years. and three years of grace. However, until the last report given by the Treasury and BNF, they have only disbursed USD 400,000 of the USD 20 million allocated.
As explained by Belén Abente, an Asepy volunteer, the trust fund is an economic support measure for the gastronomic, event, hotel, tourism and entertainment sectors established in the Emergency Law. However, from Asepy they consider that the economic sectors should be expanded, as long as they correspond to MSMEs, formal independent workers, self-employed, professionals, whether individuals, sole proprietorships or legal entities.
“According to the Economic Commission for Latin America and the Caribbean (ECLAC), the most affected sectors are commerce, wholesale and retail, hotels, restaurants and manufacturing. (ECLAC, 2020). Paraguay has not been the exception, the MSMEs and independent workers who provide a service in the process of economic, social and cultural integration of the country suffered an economic slowdown due to the sanitary measures taken by the government such as the mandatory quarantine, “said Abente.
In 2020, together with the unions, Asepy advised on the presentation of portfolios to entrepreneurs from all economic sectors in the country, as well as with private institutions and the BNF, through constant dialogue tables. “The guarantee fund was a key and successful tool for access to liquidity for the formal sector that was not in optimal conditions to access financing with flexible and favorable characteristics,” he stressed.
However, low economic growth is estimated for the end of 2022 as a result of the international economic context with repercussions on the national market such as inflation and climatic factors. These scenarios generate adjustments in monetary policy, which entails an increase in the active rates of loans for credit subjects who are not final beneficiaries of this line.
“That is why we view with concern the economic reactivation and the strong impact of lower consumption on MSMEs and independent workers, an economic sector of vital importance in the Paraguayan economy since it represents approximately 97% of the economic units and is responsible for the generation of 62% of jobs”, concluded Belén Abente.
Specifically, what they are demanding is a reconsideration of the eligibility and credit evaluation criteria that were included in the contract so that all economic sectors can access the trust resources equally and be able to promote economic reactivation.
To request assistance with Asepy, go to https://asepy.org/fideicomisobnf/
