The Central Bank of Paraguay met with representatives of producer associations and federations to assess conditions in the agricultural sector and review measures aimed at reducing the economic impact of adverse weather. Discussions centered on support options for the 2024/2025 crop season, which could be affected by the La Niña climate phenomenon. The central bank highlighted its Jan. 24, 2025 resolution allowing loans in the financial system to be renewed, refinanced or restructured without affecting the credit classification of producers hit by drought. The framework also requires an individual financial analysis in higher-risk cases, with the aim of preserving access to financing on appropriate terms for more vulnerable segments. The Central Bank of Paraguay said it will continue monitoring climate developments and their effects across economic sectors, and may adopt additional measures if needed to mitigate further negative impacts.
Central Bank of Paraguay2025-01-30
Central Bank of Paraguay reviews drought relief loan flexibility with farm sector groups
The Central Bank of Paraguay met with farm sector groups to review support measures for producers facing climate-related pressure ahead of the 2024/2025 crop season. It pointed to its Jan. 24 resolution allowing drought-affected producers to renew, refinance or restructure loans without harming their credit classification, subject to individual analysis in higher-risk cases. The bank said it may take further measures if conditions worsen.