HomeReportsBureau of Economic and Business Affairs2017 Investment Climate Statements...Paraguay

# 					2017 Investment Climate Statements: Paraguay			

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													Executive Summary											

                -  Executive Summary 
                -  1. Openness To, and Restrictions Upon, Foreign Investment   
                -  2. Bilateral Investment Agreements and Taxation Treaties   
                -  3. Legal Regime   
                -  4. Industrial Policies   
                -  5. Protection of Property Rights   
                -  6. Financial Sector   
                -  7. State-Owned Enterprises   
                -  8. Responsible Business Conduct   
                -  9. Corruption   
                -  10. Political and Security Environment   
                -  11. Labor Policies and Practices   
                -  12. OPIC and Other Investment Insurance Programs   
                -  13. Foreign Direct Investment and Foreign Portfolio Investment Statistics   
                -  14. Contact for More Information   

## Executive Summary

Paraguay has a small but rapidly growing open economy with a strong macroeconomic position and the potential for continued growth over the next decade. Major drivers of economic growth in Paraguay are the agriculture, retail, and construction sectors. The Government of Paraguay (GOP) encourages private foreign investment. Paraguayan law grants investors tax breaks, permits full repatriation of capital and profits, supports maquila operations, and guarantees national treatment for foreign investors. Standard & Poor’s, Fitch, and Moody’s all upgraded Paraguay’s credit ratings over the past three years.

Paraguay scores at the mid-range or lower in most competitiveness indicators, judicial insecurity hinders the investment climate, and trademark infringement and counterfeiting are major concerns. Additionally, the Cartes administration’s efforts to push a constitutional amendment through congress that would allow him to run for re-election resulted in uncharacteristically violent protests in 2017, raising questions on political stability. Previously, the Government of Paraguay took measures to improve the investment climate, including the passage of laws addressing competition, public sector payroll disclosures, and access to information. The Cartes administration also escalated intellectual property enforcement.

Paraguay’s export and investment promotion bureau, REDIEX, prepares comprehensive information about business opportunities in Paraguay.

*Table 1*

							1. Openness To, and Restrictions Upon, Foreign Investment					

**Policies Towards Foreign Direct Investment**

The Government of Paraguay encourages private foreign investment. Paraguay guarantees equal treatment of foreign investors and permits full repatriation of capital and profits. Paraguay has historically maintained the lowest tax burden in the region, with a 10 percent corporate tax rate and a 10 percent Value-Added Tax (VAT) on most goods and services.

Paraguay’s export and investment promotion bureau, REDIEX, provides useful information for foreign investors, including business opportunities in Paraguay, registration requirements, laws, rules, and procedures.

**Limits on Foreign Control and Right to Private Ownership and Establishment**

Foreign and domestic private entities may establish and own business enterprises. Foreign businesses are not legally required to be associated with Paraguayan nationals for investment purposes.

There is no restriction on repatriation of capital and profits. Private entities may freely establish, acquire, and dispose of business interests.

**Business Facilitation**

Paraguay responded to complaints about its traditionally onerous business registration process – previously requiring new businesses to register with a host of government entities one by one – by creating a portal in 2007 that provides one-stop service. The Sistema Unificado de Apertura y Cierre de Empresas – SUACE (www.suace.gov.py  ) is the government’s single window for registering a company. The process to register a business currently takes about one month.

**Outward Investment**

There are no restrictions to Paraguayan investing abroad. The Government of Paraguay does not incentivize or promote outward investment.

							2. Bilateral Investment Agreements and Taxation Treaties					

Paraguay has bilateral investment agreements or treaties with the following countries: Austria; Belgium; Chile; Costa Rica; Cuba, Czech Republic, El Salvador; France; Germany; Hungary; Italy, Korea; Luxembourg; the Netherlands; Peru; Portugal, Romania; South Africa; Spain; Switzerland; Taiwan; the United Kingdom; and Venezuela.

Paraguay is a founding member of the MERCOSUR common market, formed in 1991. MERCOSUR has investment protocols for internal and external investment. MERCOSUR’s full members are Argentina, Brazil, Paraguay, and Uruguay; Venezuela’s membership was suspended in 2016. Bolivia is an associate member, having signed an accession agreement in 2012 that has been ratified by all members except Brazil. MERCOSUR has investment agreements with Canada, Egypt, India, Israel, Mexico, Palestine, Peru, and the Southern African Customs Union (SACU).

The United States and Paraguay do not have a Bilateral Investment Treaty, a Free Trade Agreement, or a Bilateral Taxation Treaty. The two countries signed a Trade and Investment Framework Agreement in January 2017, but the agreement is pending ratification by Paraguay’s congress before entering into force.

							3. Legal Regime					

**Transparency of the Regulatory System**

Proposed Paraguayan laws and regulations, including those pertaining to investment, are usually available in draft form for public comment after introduction into senate and lower house committees. In most instances, there are public hearings where members of the general public or interested parties can provide comments.

Regulatory agencies’ supervisory functions over telecommunications, energy, potable water, and the environment are inefficient and opaque. Politically motivated changes in the leadership of regulating agencies negatively impact firms and investors. Corruption has historically been common in these institutions as time-consuming processes provide opportunities for front-line civil servants to seek bribes to accelerate the paperwork. The Cartes administration, which entered into office in 2013, voiced its commitment to combating corruption and took positive steps to promote transparency.

**International Regulatory Considerations**

Paraguay is a member of the World Trade Organization (WTO) and notifies the WTO Committee on Technical Barriers to Trade of all draft technical regulations.

**Legal System and Judicial Independence**

Paraguay has a Civil Law legal system based on the Napoleonic Code. A new Criminal Code went into effect in 1998, with a corresponding Code of Criminal Procedure in 2000. A defendant has the right to a public and oral trial. A three-judge panel acts as a jury. Judges render decisions on the basis of (in order of precedence) the Constitution, international agreements, the codes, decree law, analogies with existing law, and general principles of the law.

There are media reports of Executive Branch interference with judicial decision making. Judicial corruption also remains a concern, including reports of judges investing in plaintiffs’ claims in return for a percentage of monetary payouts.

**Laws and Regulations on Foreign Direct Investment**

The Investment Incentive Law (60/90) passed in 1990 permits full repatriation of capital and profits. No restrictions exist in Paraguay on the conversion or transfer of foreign currency, apart from bank reporting requirements for transactions in excess of USD 10,000. This law also grants investors a number of tax breaks, including exemptions from corporate income tax and value-added tax.

The 1991 Investment Law (117/91) guarantees equal treatment of foreign investors and the right to real property. It also regulates joint ventures (JVs), recognizing JVs established through formal legal contracts between interested parties. This law allows international arbitration for the resolution of disputes between foreign investors and the Government of Paraguay.

In December 2015, President Cartes signed an Investment Guarantee Law (5542/15) to promote investment in capital-intensive industries. Implementing regulations were published in 2016. The law protects the remittance of capital and profits, provides assurances against administrative and judicial practices that might be considered discriminatory, and permits tax incentives for up to 20 years. There is no minimum investment amount, but projects must be authorized by a joint resolution by the Ministry of Finance and Ministry of Industry and Commerce.

In 2013 the Paraguayan Congress passed a law to promote Public-Private Partnerships (PPP) in public infrastructure and allow for private sector entities to participate in the provision of basic services such as water and sanitation. The government signed implementing regulations for the PPP law in 2014. As a result, the Executive Branch can now enter into agreements directly with the private sector without the need for congressional approval. In 2015, the Government of Paraguay implemented its first contract under the new law. In 2016, it awarded its second PPP to a consortium of Spanish, Portuguese, and local companies to expand and maintain two of the country’s federal highways. Paraguay is also reviewing bids  it received for an airport expansion PPP in Asuncion. Large infrastructure projects are usually open to foreign investors.

The Government of Paraguay seeks increased investment in the maquila sector and Paraguayan law grants investors a number of incentives. The maquila program entitles a company to foreign investment participation of up to 100 percent and to special tax and customs treatment. In addition to tax exemptions, inputs are allowed to enter Paraguay tax free, and up to 10 percent of production is allowed for local consumption after paying import taxes and duties. There are few restrictions on the type of product that can be produced under the maquila system and operations are not restricted geographically. Ordinarily, all maquila products are exported.

**Competition and Anti-Trust Laws**

Paraguay passed a Competition Law in 2013, which entered into force in April 2014. Law 4956/13 explicitly prohibits anti-competitive acts and created the National Competition Commission (CONACOM) as the government’s enforcement arm.

**Expropriation and Compensation**

Private property has historically been respected in Paraguay as a fundamental right. Expropriations must be sanctioned by a law authorizing the specific expropriation. There are some cases in recent years of expropriations of land without prompt and fair compensation. In recent years groups of “landless” citizens occupied several farms in order to press for agrarian land reform.

**Dispute Settlement**

*ICSID Convention and New York Convention*

Paraguay is a member of the International Center for the Settlement of Investment Disputes (ICSID). Paraguay is a contracting state to the New York Convention.

*Investor-State Dispute Settlement*

Law 117/91 guarantees national treatment for foreign investors. This law allows international arbitration for the resolution of disputes between foreign investors and the Government of Paraguay. Foreign decisions and awards are enforceable in Paraguay.

Paraguay ranks 74 out of 190 for “Ease of Enforcing Contracts” in the World Bank’s 2017 Doing Business Report. World Bank data states the process averages 606 days and costs 30 percent of the claimed value.

*International Commercial Arbitration and Foreign Courts*

Under Paraguayan Law 194/93, foreign companies must demonstrate just cause to terminate, modify, or decide not to renew contracts with Paraguayan distributors. Severe penalties and high fines may result if a court determines that a foreign company ended the relationship with its distributor without first establishing that just cause exists, which sometimes compels Paraguayan distributors to seek expensive out-of-court settlements first. Nevertheless, cases are infrequent and courts uphold the rights of foreign companies to terminate representation agreements after finding the requisite showing of just cause.

Under two laws, Article 195 of the Civil Procedural Code and Law 1376/1988, a plaintiff pursuing a lawsuit may seek reimbursement for legal costs from the defendant calculated as a percentage (not to exceed 10 percent) of claimed damages. In larger suits, the amount of reimbursed legal costs often far exceeds the actual legal costs incurred.

**Bankruptcy Regulations**

Paraguay has a bankruptcy law (154/63) under which a debtor may suspend payments to creditors during the evaluation period of the debtors’ restructuring proposal. If no agreement is reached, a trustee may liquidate the company’s assets. According to the World Bank’s 2017 Doing Business Report, Paraguay stands at 102 in the ranking of 190 economies on the ease of resolving insolvency. The report states resolving insolvency takes 3.9 years on average and costs nine percent of the debtor’s estate, with the most likely outcome being that the company will be sold as piecemeal sale. The average recovery rate is 20.5 cents on the dollar. Bankruptcy is not criminalized in Paraguay.

							4. Industrial Policies					

**Investment Incentives**

Paraguay grants investors a number of tax breaks under Law 60/90, including exemptions from corporate income tax and value-added tax. Paraguay also has a temporary entry system, which allows duty free admission of capital goods such as machinery, tools, equipment, and vehicles to carry out public and private construction work. The government also allows temporary entry of equipment for scientific research, exhibitions, training or testing, competitive sports, and traveler or tourist items.

**Foreign Trade Zones/Free Ports/Trade Facilitation**

Paraguayan Law 523/95 (which entered into force in 2002) permits the establishment of Free Trade Zones. Paraguay has two Free Trade Zones in Ciudad del Este – one that operates largely as a manufacturing center and a second that focuses on warehouse storage. Paraguay is a landlocked country with no seaports but has numerous private and public inland river ports. About three-fourths of commercial goods are transported by barge on the Paraguay-Parana river system that connects Paraguay with Buenos Aires, Argentina and Montevideo, Uruguay. Paraguay has agreements with Uruguay, Argentina, Brazil, and Chile on free-trade ports and warehouses for the reception, storage, handling, and trans-shipment of merchandise.

**Performance and Data Localization Requirements**

Paraguay does not mandate local employment or have excessively onerous visa, residence, work permit or similar requirements inhibiting mobility of foreign investors and their employees. Voting board members of any company incorporated in Paraguay must have legal residence, which takes a minimum of 90 days to establish, posing a potential obstacle to foreign investors.

Paraguay does not have a forced localization policy requiring foreign investors to use domestic content in goods or technology. There are no requirements for maintaining a certain amount of data storage within Paraguay or for foreign IT providers to turn over source code and/or provide access to surveillance. Paraguayan law requires internet service providers to retain IP address for six months for certain commercial transactions.

Paraguay’s Public Contracting Law (4558/11) gives preference in government bids to locally produced goods in public procurements open to foreign suppliers, even if the domestic good is up to 20 percent more expensive than the imported good. Foreign firms can bid on tenders deemed “international” and on “national” tenders through the foreign firm’s local agent or representative. The government is making efforts to enhance transparency and accountability, including through the creation of an internet-based government procurement system. Paraguay is not a signatory to the WTO Agreement on Government Procurement.

							5. Protection of Property Rights					

**Real Property**

The 1992 constitution guarantees the right of private property ownership. While it is common to use real property as security for loans, the lack of consistent property surveys and registries often makes it impossible to foreclose. According to government figures, there is 35 percent more titled land in Paraguay than physically exists. In some cases, acquiring title documents for land can take two years or more. The World Bank’s 2017 Business Report ranks Paraguay 76 of 190 for ease of registering property, noting the process requires six procedures, averages 46 days, and costs 1.9 percent of the property value.

Paraguay has a “squatter’s rights” law by which ownership  of property can be gained by possession  of it beyond the lapse of 20 years.

**Intellectual Property Rights**

Paraguay was removed from the U.S. Trade Representative’s (USTR) Special 301 Report Watch List in 2015 pursuant to an Out-of-Cycle Review. The United States and Paraguay signed a Memorandum of Understanding on IPR in June 2015, under which Paraguay committed to take specific steps to improve its IPR protection and enforcement environment. Additionally, the MOU solidifies bilateral cooperation by which the United States supports Paraguay’s efforts to strengthen the legal protection and enforcement of IPR. Since coming into office in 2013, the Cartes administration, primarily through National Directorate of Intellectual Property (DINAPI) and partner law enforcement agencies, has escalated enforcement efforts in Paraguay.

Ciudad del Este has been named in either the USTR Notorious Markets Report or the Special 301 Report for over 15 years. The border crossing at Ciudad del Este and the city itself reportedly serve as a hub for the distribution of counterfeit and pirated products in the Brazil-Argentina-Paraguay tri-border region and beyond. The Cartes administration seeks to transform Ciudad del Este into a legitimate marketplace and is executing its commitments under the IPR MOU to address this issue.

Concerns remain about inadequate protection against unfair commercial use of proprietary test or other data generated to obtain marketing approval for agrochemical or pharmaceutical products and the shortcomings in Paraguay’s patent regime. Law 3283 from 2007 and Law 3519 from 2008, (1) require pharmaceutical products and agrochemical products to be registered first in Paraguay to be eligible for data protection; (2) allow regulatory agencies to use test data in support of similar agricultural chemical product applications filed by third parties; and (3) limit data protection to five years. Additionally, Law 2593/05 that modifies Paraguay’s patent law has no regulatory enforcement. Because of this, foreign pharmaceutical companies have seen their patented products openly replicated and marketed under other names by Paraguayan pharmaceutical companies.

Paraguay has ratified all of the Uruguay Round accords, including the Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPS), and has ratified two World Intellectual Property Organization (WIPO) copyright treaties. For additional information about treaty obligations and points of contact at local IP offices, please see WIPO’s country profiles at http://www.wipo.int/directory/en/ .

For additional information about national laws and points of contact at local IP offices, please see WIPO’s country profiles at http://www.wipo.int/directory/en/ .

Regional IP AttacheU.S. Consulate General – Rio de Janeiro+ 55 (21) 3823-2499

Deputy Political and Economic CounselorU.S. Embassy Asuncion+ 595 (21) 213-715CommercialAsuncion@state.gov

National Intellectual Property Directorate: https://www.dinapi.gov.py/ 

Paraguayan-American Chamber of Commerce: http://www.pamcham.com.py/ 

Local Lawyers: http://photos.state.gov/libraries/paraguay/5/Consular/Attorneys%20at%20Law_001.pdf 

							6. Financial Sector					

**Capital Markets and Portfolio Investment**

Credit is available but expensive. Banks charge anywhere from 40 percent to 60 percent interest on consumer loans, with the vast majority favoring repayment horizons of one year. Loans for up to 10 years are available at higher interest rates. High collateral requirements are generally imposed. Because of the difficulty in obtaining bank loans, Paraguay has seen growth in alternative and informal lending mechanisms, such as “payday” lenders. These entities can charge up to 85 percent interest on short term loans according to banking contacts. The high cost of capital makes the stock market an attractive, although underdeveloped option. Paraguay has a relatively small capital market that began in 1993. As of December 2016, the Asuncion Stock exchange consisted of 92companies, totaling USD 591 million in transactions. Many family-owned enterprises fear losing control, dampening enthusiasm for public offerings. The Paraguayan Senate is currently reviewing a resolution requiring owners of stocks to be registered, effectively prohibiting bearer shares.

The Government of Paraguay issued Paraguay’s first sovereign bonds in 2013 for USD 500 million to accelerate development in the country. Paraguay also issued bonds in 2014, 2015, 2016 and recently in March 2017 for USD 1 billion, USD 280 million, USD 600 million and USD 500 million respectively. Proceeds are expected to finance key infrastructure development programs designed to promote economic and social development and job creation. Standard & Poor’s, Fitch, and Moody’s all upgraded Paraguay’s credit ratings in 2015 and 2016. Commercial banks also issue debt to fund long-term investment projects.

**Money and Banking System**

Paraguay’s banking system includes 17 banks with a total USD 20 billion in assets and USD 14 billion in deposits. Non-performing loans in the banking sector totaled just 2.8 percent of total loans in 2016. The banking system is generally sound but remains overly liquid. Long term financing for capital investment projects is scarce. Most lending facilities are short term. Banks and finance companies are regulated by the Banking Superintendent, which is housed within, and is under the direction of the Central Bank of Paraguay.

The Paraguayan capital markets are essentially focused on debt issuances. As the listing of stock is limited, with the exception of preferred shares, Paraguay does not have clear rules regarding hostile takeovers and shareholder activism

**Foreign Exchange and Remittances**

*Foreign Exchange*

There are no restrictions or limitations placed on foreign investors in converting, transferring, or repatriating funds associated with an investment (e.g. remittances of investment capital, earnings, loan or lease payments, royalties). Funds associated with any form of investment can be freely converted into any world currency. The national currency rate fluctuates.

*Remittance Policies*

There are currently no plans to change investment remittance policies that either tighten or relax access to foreign exchange for investment remittances. There are no time limitations on remittances. Paraguay is a member of the Financial Action Task Force against Money Laundering in Latin America (GAFILAT), a Financial Action Task Force (FATF)-style regional body.

**Sovereign Wealth Funds**

Paraguay does not have a sovereign wealth fund.

							7. State-Owned Enterprises					

Paraguay’s State Owned Enterprises (SOEs) are active in the petroleum distribution, cement, electricity (distribution and generation), water, and land-line and cellular telecommunication sectors. In general, SOEs are monopolies with no private sector participation. Most operate independently but maintain an administrative link with line ministries, namely the Ministry of Public Works & Communications. SOEs have audited accounts and the results are published online.

SOEs’ corporate governances are weak. SOEs operate with politically appointed advisors and executives and are often overstaffed and are an outlet for patronage, resulting in poor administration and services. Some SOEs burden the country’s fiscal position, running deficits most years. SOEs are not required to have an independent audit, but the Itaipú and Yacyretá bi-national hydroelectric dams, which are considered semi-autonomous entities administered by joint bilateral government commissions, have a board of directors and are required to have an independent audit.

**Privatization Program**

Paraguay does not have a privatization program.

							8. Responsible Business Conduct					

Responsible Business Conduct (RBC) is growing with the support of Paraguay’s largest firms. Additionally the private sector is taking measures to institutionalize ethical business conduct under initiatives such as the Pacto Etico Comercial (Business Ethics Pact). An initiative sponsored by the U.S. Department of Commerce, the Pacto Etico Comercial was established by over 100 local, U.S., and international companies that committed to creating a code of ethics and undergoing a rigorous auditing process to reach certification. The Government of Paraguay does not have any formal programs or policies to encourage RBC.

							9. Corruption					

Paraguayan law provides criminal penalties for official corruption; however, impunity impedes effective implementation. Historically, officials in all branches and at all levels of government have engaged in corrupt practices. Judicial insecurity and corruption in the judicial system mar Paraguay’s investment climate. Many investors find it difficult to enforce adequately contracts and are frustrated by lengthy bureaucratic procedures, limited transparency and accountability, and impunity.

The Government of Paraguay has taken several steps in recent years to increase transparency and accountability, including the passage of an Access to Information Law in 2014, the creation of a transparent, internet-based government procurement system, the disclosure of government payroll information, the appointment of respected apolitical officials to key posts; and increased civil society input and oversight. Notwithstanding, corruption and impunity continue to affect the investment climate.

The constitution requires all public employees, including elected officials and employees of independent government entities, to disclose their income and assets at least 15 days after taking office or being appointed and again within 15 days after finishing their term or assignment. Starting in 2014, employees are required to include information on the assets and income of spouses and dependent children. Officials are not required to file periodically when changes occur in their holdings.

*UN Anticorruption Convention, OECD Convention on Combatting Bribery*

Paraguay signed and ratified the United Nations Anticorruption Convention in 2005.

*Resources to Report Corruption:*

General Auditors OfficeBruselas 1880, Asuncion, Paraguay+ 595 21 620 0260atencion@contraloria.gov.py

Public MinistryNuestra Señora de la Asuncion c/ Haedo, Asuncion, Paraguay+ 595 21 454 611http://www.ministeriopublico.gov.py/contenidos/menu/institucion/denunciar/index.php 

Anti-Corruption SecretariatEl Paraguayo Independiente esquina Río Ypane, Asuncion, Paraguay+ 595 21 450-001/2http://www.senac.gov.py/ 

Seeds for DemocracyRoma 1055 casi Colón, Asuncion, Paraguay+ 595 21 420 323semillas@semillas.org.p

							10. Political and Security Environment					

While Paraguay has not traditionally been affected by political violence, this streak brokein March 2017 when approximately 2,500 protesters stormed and partially burned the congressional assembly. Protesters also damaged and vandalized storefronts, parked cars, and additional government offices in the downtown area. The police response resulted in the death on one protester and numerous injuries. The protests erupted in response to a non-traditional meeting of 25 senators to pass a bill approving a constitutional amendment to allow President Cartes and other former presidents to run for re-election. The legality of the senators’ actions is in question, but the lower house may ultimately vote in favor of the bill, which would trigger a nationwide referendum on the amendment.

Paraguay has been spared the large number of kidnappings that occur in neighboring Latin American countries, but a few high profile cases have occurred in recent years, most of them attributed to purported members of the leftist Paraguayan People’s Army (EPP). The Government of Paraguay responded to the EPP threat with combined military and police operations. Land invasions, marches, and organized protests occur, mostly by rural and indigenous communities making demands on the government, but these events have rarely turned violent.

							11. Labor Policies and Practices					

With a population growth rate above three percent per annum and 70 percent of the population below the age of 35, job creation to meet the large and growing labor force is one of the most pressing issues for the Government of Paraguay. However, the weak education system limits the supply of well-educated workers and is an obstacle to growth.

Paraguay’s labor code makes it very difficult to lay-off a formally registered, full-time employee who has completed ten consecutive years of employment. Firms often opt for periodic renewals of “temporary” work contracts instead of long term contracts.

Paraguayan law provides for the right of workers to form and join independent unions (with the exception of the armed forces and the police), bargain collectively, and conduct legal strikes. The law prohibits binding arbitration and retribution against union organizers and strikers. While the law prohibits anti-union discrimination and sets the financial penalty, employers are not required by law to reinstate workers fired for union activity, even in cases where labor courts fine firms for anti-union discrimination.

The minimum age for formal, full-time employment is 18. In October 2015, the executive branch approved legislation increasing the minimum age for employment of domestic workers from 14 to 18 years. Adolescents between the ages of 14 and 17 may work if they have a written authorization from their parents, attend school, do not work more than four hours a day, and do not work more than a maximum of 24 hours per week. Adolescents between the ages of 16 to 18 who do not attend school may work up to six hours a day, with a weekly ceiling of 36 hours. The law also permits “light work” for children between the ages of 12 and 14. The government has not formally defined what constitutes permitted light work for children between ages 12 and 14.

For more background on labor issues in Paraguay, please refer to the Department of Labor’s *Findings on the Worst Forms of Child Labor*at www.dol.gov/ilab/reports/child-labor/findings/  and the Department of State’s *Country Reports on Human Rights Practices for 2016*at https://www.state.gov/j/drl/rls/hrrpt/humanrightsreport/index.htm?year=2016&dlid=265606#wrapper

							12. OPIC and Other Investment Insurance Programs					

The United States and Paraguay signed a 1992 investment guaranty agreement, allowing OPIC to conduct full operations in Paraguay. OPIC financed telecommunications, forestry, and various renewable energy projects in Paraguay. OPIC has also partnered with Citibank to support loans for small and medium sized enterprises (SMEs) and micro finance loans. OPIC completed their last assessment in March 2017.

Paraguay is a member of the World Bank’s Multilateral Investment Guarantee Agency (MIGA).

							13. Foreign Direct Investment and Foreign Portfolio Investment Statistics					

*Table 2: Key Macroeconomic Data, U.S. FDI in Host Country/Economy*

*Host country statistical data source: https://www.bcp.gov.py/anexo-estadistico-inversion-extranjera-directa-i378 

*Table 3: Sources and Destination of FDI*

*Table 4: Sources of Portfolio Investment*

IMF’s Coordinated Portfolio Investment Survey (CPIS) data is not available for Paraguay.

							14. Contact for More Information					

Rocco CostaPolitical and Economic OfficerU.S. Embassy Asuncion+ 595 21 213 715CommercialAsuncion@state.gov

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### On This Page

                    -  Executive Summary 
                    -  1. Openness To, and Restrictions Upon, Foreign Investment   
                    -  2. Bilateral Investment Agreements and Taxation Treaties   
                    -  3. Legal Regime   
                    -  4. Industrial Policies   
                    -  5. Protection of Property Rights   
                    -  6. Financial Sector   
                    -  7. State-Owned Enterprises   
                    -  8. Responsible Business Conduct   
                    -  9. Corruption   
                    -  10. Political and Security Environment   
                    -  11. Labor Policies and Practices   
                    -  12. OPIC and Other Investment Insurance Programs   
                    -  13. Foreign Direct Investment and Foreign Portfolio Investment Statistics   
                    -  14. Contact for More Information   

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