This week in Asunción, the Inter-American Development Bank (IDB) and the International Monetary Fund (IMF) unveiled plans to deepen their collaboration with Latin American and Caribbean nations on environmental and sustainable development efforts. IDB President Ilan Goldfajn and IMF Managing Director Kristalina Georgieva made the announcement following a meeting with Paraguayan President Santiago Peña at the Government Palace.
Both institutions are committed to advancing climate change adaptation and mitigation through the Resilience and Sustainability Facility (SRS) Agreement, under which Paraguay has secured $100 million in funding. The IMF also introduced a new Policy Coordination Instrument (PCI) with Paraguay, designed to support macroeconomic stability, productivity, and social inclusion until November 2024.
Georgieva praised Paraguay for its robust macroeconomic strategies, which she believes have positioned the country as a leader in green economic practices. The IMF has also allocated $400 million to a sustainability fund, recognizing Paraguay as the first Latin American country to benefit from this initiative.
Goldfajn highlighted Paraguay’s potential in renewable energy and its role in electricity exports, applauding its 25-year track record of macroeconomic stability that underpins sustained growth. He announced that Paraguay will host the IDB and IDB Invest annual meetings in 2026, emphasizing the benefits of international cooperation for regional and global progress.
Additionally, the IDB will support the IDB Climate project, a pilot program focused on restoring the Ypacaraí Lake basin, further underscoring the joint commitment to environmental stewardship.
