Project Name：Microcredit Development Project in Paraguay

Project status：Projects in Operation

Cooperating Country：Paraguay

Project Description：

The TaiwanICDF is cooperating with the Agencia Financiera de Desarrollo (AFD), Paraguay’s national development bank, to expand the provision of suitable and concessional loan products by local financial intermediaries for micro and small enterprises (MSEs), with a special focus on women-led businesses.

Project Objectives：

To strengthen access to financing for micro and small enterprises in Paraguay, thereby enhancing their competitiveness and long-term sustainability.

Executing Agency：

Agencia Financiera de Desarrollo (AFD)

Implementation Arrangement：

To effectively expand microfinance services to MSEs particularly women-led enterprises, AFD will increase its engagement with credit unions and promote the use of credit guarantee mechanisms, including the Fondo de Garantía del Paraguay (FOGAPY), and the Fondo de Garantía para la Mujer (FOGAMU), the latter of which was jointly established by AFD and the TaiwanICDF in 2022. These mechanisms will support credit unions in developing loan products tailored to the needs of MSEs for technological innovation and for general working capital and capital investment requirements.

In line with Paraguay’s policy to promote the formalization of micro and small enterprises, the project beneficiaries will be limited to MSEs that possess a tax identification number (RUC) to encourage informal enterprises in transit to formalization.

Project Contact：Daphne Tien

Phone：+886 2 2888 6078

E-mail：daphne_tien@icdf.org.tw

Signing Date：2025-10-21