Reducing regional and gender inequalities in Paraguay

Banco Rio is a Paraguayan bank, created in 2019 from the merger between Banco Itapuá and Financiera Rio. Banco Itapuá’s historical presence in the eastern and landlocked regions of the country, through 21 branches, and Financiera Rio's commercial engineering in favor of SMEs, make Banco Rio a key player in small business financing. The bank also offers digital and mobile services to its clients, thereby improving financial inclusion in the country.

The loan will support Banco Rio in the development of its sustainable finance strategy, which aims to reduce regional disparities by investing in marginalized areas of the country. The financing will also aim to support women’s empowerment, by lending to SMEs founded or managed by women, according to the criteria of the 2X Challenge. Proparco will also support Banco Rio through two technical assistance programs to accelerate the development of its products for women entrepreneurs, and improve its environmental and social (E&S) management system.

The expected impacts of this financing are as follows:

Employment

• 6,712 jobs supported over the next 5 years in the bank or in its value chain

Start-ups & SMEs

• More than 250 SMEs supported

Gender

• Contribution to gender equality through a commitment to finance companies aligned with the 2X Challenge (50% of Proparco’s financing). Proparco’s financing is aligned with the 2X Challenge on the basis of the criteria 2 (Leadership), 3 (Employment) and 6 (Portfolio)
• Implementation of two technical assistance programs:  the first to accelerate the development of products for women entrepreneurs, and the second to improve the bank’s environmental and social (E&S) management system

The project will thereby contribute to the achievement of SDGs 5 (Gender equality) and 8 (Decent work and economic growth).