IBRD Loan: US$100 million
TERMS: Maturity = 27 years; Grace = 8 years
Project Description: The First Public Sector Programmatic Development Policy Loan Program for Paraguay aims to a) safeguard the proportion of budgeted social expenditure during execution, as a contribution of the anti-crisis plan; and b) pave the way for the reform process in the areas supported by the loan. The Bank operation will also be included in the International Financial Institutions (IFIs) contingency package totaling US$300 million, which is one of the components of the anti-crisis plan aiming at creating fiscal space to soften the impact of the crisis through an increase in public investment and prioritized social expenditures. The operation will focus on four program components: 1) tax system; 2) public sector financial control; 3) expenditure management; and 4) human resources management.