Guarantee funds expand industrial and SME financing in Paraguay and Argentina

In Paraguay, the Industrial Guarantee Fund (FOGAIN), managed by the Development Finance Agency (AFD), has launched a program to provide partial guarantees for industrial investment projects. With a fund of USD 10 million, FOGAIN can leverage up to USD 50 million in operations. The program offers tiered coverage: up to 50% for credits up to Gs. 7,500 million, 30% for up to Gs. 12,000 million, and 25% for up to Gs. 15,000 million. Priority sectors include agro-industry, metalworking, textiles, and wood manufacturing. Companies can access credits up to USD 2.5 million with terms of up to 15 years.

In Argentina, the Río Negro Guarantee Fund (FOGARÍO) has expanded its scope to include the capital markets, allowing it to back SME operations through instruments such as deferred payment checks, promissory notes, and electronic credit invoices. The fund recently completed its first operation in San Antonio Oeste, providing guarantees for three deferred payment checks from the SME Azul Pesquera, enabling the company to secure financing within 48 hours.