Paraguay welcomes IMF’s US$250 million grant for health and social programs

RIO DE JANEIRO, BRAZIL – The International Monetary Fund’s (IMF) support to Paraguay is part of the Special Drawing Rights (SDR) amounting to US$650 billion to all member countries and approved by the IMF’s Board of Governors.

“Vice Minister of Economy Iván Haas welcomed the IMF Board of Governors’ approval of some US$250 million to finance the Economic Consolidation and Social Containment Bill, intended to guarantee health, social programs and support for workers and companies,” the Ministry of Finance said in a statement published on its website.

The general allocation of SDRs will come into force on August 23 this year and will be credited to IMF member countries in proportion to their current quotas in the institution.

The Ministry clarified that this contribution cannot be regarded as debt as it is a distribution made in proportion to the member countries’ share. SDRs are typically allocated in periods of crisis.

Members that use it pay a 0.5% administrative fee rather than interest, as would be the case with a loan.