ARTICLE 1 · MAIN ARTICLE

From interest to capital

Can Paraguay turn potential investment into industrial projects that can secure financing?

Presenting projects to investors, launching a credit line and creating a guarantee fund are separate steps. None of them puts a factory into operation on its own. Issue 012 follows the chain Interest → Bankability → Credit → Guarantee → CAPEX → Operation → Cash Flow.

Para-kun

If an international investor takes an interest in Paraguay, does the capital arrive and the factory get built automatically?

Doctor Insight

No. A project must be able to secure financing, pass a credit assessment and combine equity, guarantees, permits, customers and the ability to carry out the plan before funds are paid out.

01 · INVESTMENT FORUM 2026

New York can generate interest; attending the Forum does not mean an investment deal has closed

Paraguay Investment Forum 2026 took place on 21 and 22 September in New York. The first day, Discover Paraguay, was organized by the Government of Paraguay with Bank of America. The second, Invest in Paraguay, was organized with J.P. Morgan and aimed at an audience of approximately 130 businesspeople and investors linked to the institution.

Projects and opportunities in infrastructure, forestry and other productive sectors were presented. PARAGUAY INSIGHT treats the Forum as a way to develop potential projects and connections, not as evidence of investment contracts already signed.

21–22 SepNew YorkParaguay Investment Forum 2026

Bank of AmericaDay 1Discover Paraguay

J.P. MorganDay 2Invest in Paraguay

~130Audienceestimate published by MIC

02 · THE FINANCING GAP

Tax incentives reduce costs; they do not replace long-term capital

Factories, machinery, storage, energy and logistics require capital expenditure (CAPEX) before they generate cash. A tax incentive can reduce a project’s cost, but cannot by itself cover funding needs during construction and start-up.

That is why we examine tax incentives, long-term credit, grace periods, collateral, guarantees, working capital and equity as one funding mix, or Capital Stack.

INTEREST

BANKABILITY

CREDIT

GUARANTEE

CAPEX

OPERATION

CASH FLOW

PARAGUAY INSIGHT editorial analysis: Capital Stack is our framework for organizing public and private funding tools; it is not the name of an official strategy.

Read Paraguay Industrial: rates, terms and process →
Read FOGAIN: guarantees for industry →
Read Paraguay Investment Forum 2026 →