Paraguay Industrial is a long-term financing program for machinery, expansions, new factories and working capital. The key is to distinguish the total size of the line—US$100M according to MIC—from AFD’s published limit of up to US$2.5M per beneficiary.
AFD publishes a maximum of US$2.5 million per beneficiary, a term of up to 15 years, a grace period of up to 3 years and final rates of 10.5% in guaraníes and 8.5% in dollars. Funds are supplied through financial intermediaries, so eligibility and credit approval remain separate stages.
AFD presented Paraguay Industrial on 17 September 2026 as a national program to facilitate investment in production capacity, technology and new industrial projects.
Published uses include machinery and equipment, expansions, construction of new factories and working capital linked to eligible projects.
MIC describes Paraguay Industrial as a US$100 million financing line. AFD publishes a limit of up to US$2.5 million per beneficiary.
US$100 million is therefore not the amount a single company can borrow, nor proof that the entire line has already been approved or paid out.
The published terms are up to 15 years, a grace period of up to 3 years, a final rate of 10.5% in guaraníes and 8.5% in dollars.
A long term may be better suited to industrial capital expenditure. A company borrowing in dollars should check whether its revenue is also in dollars or whether it adequately covers exchange-rate risk.
Funds are supplied through Instituciones Financieras Intermediarias, such as authorized banks, finance companies and cooperatives.
Including a project in the program does not replace credit assessment. The intermediary still evaluates repayment capacity, cash flow, guarantees and the investment structure.
AFD includes machinery, equipment, facility expansions, new factories and working capital among eligible uses.
The final structure depends on each transaction. Before committing to capital expenditure, it is advisable to confirm eligible expenses, schedules, guarantees, permits and specific conditions with the financial intermediary.
AFD reported US$108.8 million in industrial approvals across 172 transactions during 2026, compared with US$18 million in the same period of 2025.
This figure refers to AFD’s total industrial financing, not Paraguay Industrial’s performance. Measuring the new program will require tracking its own approvals and disbursements.
A company can organize these elements from the start: ① total investment, ② equity, ③ cash flow, ④ construction/equipment budget, ⑤ customers or purchase commitments, ⑥ guarantees, ⑦ permits and ⑧ exchange-rate exposure.
This is a PARAGUAY INSIGHT editorial framework for assessing the ability to secure financing, not an official AFD assessment checklist.
Read the main article in Issue 012 →
Read how FOGAIN works →
Read Paraguay Investment Forum 2026 →