The BCP extends until the end of the year period to refinance loans – National

The Central Bank of Paraguay (BCP), through a statement, indicates that in the current state of health emergency it is prudent to still foresee eventual adverse economic impacts on certain commercial, financial, industrial and productive activities in the country, regardless of the size of the country. the company.

“In the same line of the previous measures issued by the BCP, the recent provision has the purpose of maintaining facilities and preserving a favorable environment for banks and financial companies to provide adequate assistance to companies and families of all sectors that demand the rescheduling your credits, “the statement added.

The entity explains that, while ratifying the firm commitment to its legal mandate to ensure the solvency, stability and integrity of the financial system, it understands that the extension and adjustments of this regulatory measure will facilitate the timely provision of financial resources to the market and it will contribute strongly to boost economic activity.

The complementary measures had been adopted in March 2020 as part of the economic package launched by the Government to mitigate the effects of the COVID-19 pandemic on the economy; then in December it was decided to extend until June 30 of this year and, this week, it was approved that it go until December 31.

Economic package

The parent bank made this determination after the Government has decreed to return to phase 0 of the quarantine from tomorrow until next Sunday, April 4, to stop the contagion of covid-19.

The versions, however, suggest that the intention of the Executive would be to further extend the restrictions and for this it is seeking the support of business unions, although a part of the service sector has already advanced its opposition due to the damages it generates to economic activity .

The Government this week also confirmed a series of measures that aim to mitigate the impact of the new restrictions, mainly in the gastronomy, hotels, tourism and events sector.

It was decided to extend the payment of 50% VAT from June until October, refinancing the debts, with a new grace period, contracted with the National Development Bank (BNF) and the Agricultural Enabling Credit (CAH), and that the Fogapy has the funds to guarantee new credits.

Also the deferral of payments for basic services, such as water and electricity; while for taxpayers in general of the Undersecretariat of Taxation, the possibility of financing the payment of taxes with an interest rate of 1.1%, a measure that generated much criticism for being very high.

To this will be added the payment of the subsidy to merchants and informal workers in cities on the border with Argentina. In this sense, the Treasury has already announced that it is working on fine-tuning the platform to register the beneficiaries in order to start the payment of the economic aid sanctioned by Congress as soon as possible.