FOGAIN—the Fondo de Garantía para la Industria—was presented in September 2026 as a tool for industrial companies that need guarantees to access credit. A guarantee can support a transaction, but does not mean automatic approval.
MIC presented FOGAIN as a guarantee tool for industrial companies that need additional backing to access credit. AFD states that eligible Paraguay Industrial transactions may optionally use FOGAIN. The public sources reviewed do not provide enough detail on coverage percentages, limits, fees or detailed operating criteria, so we do not fill those gaps with estimates.
FOGAIN stands for Fondo de Garantía para la Industria. MIC presented it on 17 September 2026 as part of a package of tools aimed at expanding access to industrial financing.
AFD also states that eligible Paraguay Industrial transactions may optionally access FOGAIN guarantees.
A company may have a viable production project but lack enough assets to secure the full credit exposure from the outset.
A guarantee can help cover that risk, but does not replace assessment of cash flow, equity, customers, permits, costs and the ability to deliver the project.
Paraguay Industrial publishes terms of up to US$2.5 million per beneficiary, up to 15 years and a grace period of up to 3 years. FOGAIN is presented as an option for transactions requiring additional backing.
The financing question is not just the interest rate: it also matters whether the complete structure allows the financial intermediary to take on the transaction’s risk.
As of 24 September 2026, the MIC and AFD publications reviewed do not allow sufficiently precise confirmation of the coverage percentage, limit per transaction, fees, guarantee term or detailed rules by subsector.
PARAGUAY INSIGHT therefore does not publish undocumented percentages or assumptions. A company must confirm the current terms with its financial intermediary and the responsible institutions.
FOGAIN may reduce or supplement a guarantee requirement, but the financial intermediary still assesses repayment capacity and project quality.
A useful approach is to assess how much a transaction’s ability to secure financing improves when a guarantee is combined with equity, cash flow and other project elements.
① Project eligibility, ② financial intermediaries offering the guarantee, ③ the portion of credit that may be guaranteed, ④ required equity and collateral, ⑤ associated costs and procedures, and ⑥ conditions for combining it with Paraguay Industrial.
This is an editorial verification guide, not an official FOGAIN checklist. Formal transaction terms must be confirmed with the responsible institutions.
Read the main article in Issue 012 →
Read the Paraguay Industrial financing terms →
Read Paraguay Investment Forum 2026 →