{
  "title": "Paraguay: Request for Purchase Under the Rapid Financing Instrument-Press Release; Staff Report; and Statement by the Executive Director for Paraguay",
  "publication": "IMF Staff Country Reports, April 22, 2020",
  "sourceUrl": "https://www.imf.org/en/publications/cr/issues/2020/04/22/paraguay-request-for-purchase-under-the-rapid-financing-instrument-press-release-staff-49359",
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  "summary": "This paper presents Paraguay’s Request for Purchase Under the Rapid Financing Instrument (RFI). In March 2020, Paraguay was hit by the Covid-19 epidemic, which has created fiscal and balance of payments needs.",
  "sections": [
    {
      "heading": "Request and context",
      "content": "- Presents Paraguay’s Request for Purchase Under the Rapid Financing Instrument (RFI).\n- In March 2020, Paraguay was hit by the Covid-19 epidemic, which has created fiscal and balance of payments needs.\n- The authorities are requesting financial assistance under the IMF’s RFI to address the urgent balance of payments needs associated with the Covid-19 epidemic.\n- Given the urgency of their request, there is no time to put in place a full-fledged upper credit tranche program."
    },
    {
      "heading": "Assessment of authorities' response and constraints",
      "content": "- The authorities’ policy response to the epidemic has been timely.\n- Limited access to financing and a weakened fiscal position constrain the ability to pursue a deeper emergency response.\n- The authorities are of the view that they can make suitable adjustments to manage their medium-term balance of payments challenges."
    },
    {
      "heading": "Policy recommendations and macroeconomic framework",
      "content": "- Return to the deficit ceiling under the Fiscal Responsibility Law in order to prevent the emergence of permanently high deficits after the crisis.\n- Allow the exchange rate to continue to function as a shock absorber.\n- Monetary policy should focus on inflation targeting."
    },
    {
      "heading": "Key themes and subject areas",
      "content": "- Banking\n- COVID-19\n- Credit\n- Exchange rates\n- External debt\n- Foreign exchange\n- Health\n- Money\n- Public debt\n- Revenue administration\n\nInternational Monetary Fund. Paraguay: Request for Purchase Under the Rapid Financing Instrument-Press Release; Staff Report; and Statement by the Executive Director for Paraguay (April 22, 2020).\n\n---\n\n Content in this bundle\n\n- 1pryea2020001\n  - 1pryea2020001 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - 1pryea2020001 (PDF){rel=\"external\" type=\"application/pdf\"}"
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    "Published: April 22, 2020",
    "Series: IMF Staff Country Reports",
    "DOI: https://doi.org/10.5089/9781513541815.002",
    "Presents Paraguay’s Request for Purchase Under the Rapid Financing Instrument (RFI).",
    "In March 2020, Paraguay was hit by the Covid-19 epidemic, which has created fiscal and balance of payments needs.",
    "The authorities are requesting financial assistance under the IMF’s RFI to address the urgent balance of payments needs associated with the Covid-19 epidemic.",
    "Given the urgency of their request, there is no time to put in place a full-fledged upper credit tranche program.",
    "The authorities’ policy response to the epidemic has been timely.",
    "Limited access to financing and a weakened fiscal position constrain the ability to pursue a deeper emergency response.",
    "The authorities are of the view that they can make suitable adjustments to manage their medium-term balance of payments challenges.",
    "Return to the deficit ceiling under the Fiscal Responsibility Law in order to prevent the emergence of permanently high deficits after the crisis.",
    "Allow the exchange rate to continue to function as a shock absorber.",
    "Monetary policy should focus on inflation targeting.",
    "**1pryea2020001**"
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