Informe Económico Preliminar : 2005

Abstract

For the Central Bank of Paraguay, the economic situation in 2005, both domestic and external, posed several challenges. First, the Precautionary Stand-By Agreement signed with the International Monetary Fund contained various quantitative targets and economic policy measures, which were satisfactorily achieved, culminating in the efforts of both the Central Bank and other national government institutions. The targets for international reserves and the growth limit on the Central Bank's net domestic assets were met throughout 2005. At year-end, international reserves stood at a record level of nearly 19% of GDP, reaching USD 1,293.5 million, while net domestic assets were more restrictive than agreed upon with the International Monetary Fund, by 84 billion guaraníes. This agreement has been very important in regularizing the public sector's debt service arrears and strengthening the country's macroeconomic position.