1. Reasons to invest in Paraguay UK-Paraguay Trade & Investment Forum Nov-06-2014 German Rojas Irigoyen Minister of Finance - Paraguay

2. Source: Ministry of Finance of Paraguay and Central Bank of Paraguay. International Monetary Fund, World Economic Outlook Database, October 2012. Debt / GDP (%) Macroeconomic Stability GDP Growth(%) Fiscal Balance (as GDP %) GDP Growth in the Region(%)

3. The 2014-2018 investment program is expected to accelerate Paraguay’s growth trend Investment by type (US$mm) Funding by source (US$mm) Source: Central Bank of Paraguay, Ministry of Finance The medium-term investment program will focuses on improving infrastructure and society The private sector will be a critical participant in realizing the country's strategic vision, contributing 23% of funds Private sector investment will enhance the development of domestic industries Public sector funds will be distributed across infrastructure spending and investment in human capital

4. Investment Highlights Improved external resiliency reflecting solid credit fundamentals Consistent growth in services sector leading to increased levels of economy diversification Sustainable economic growth and dynamism Improving global competitiveness and investor- focused policies Prudent fiscal management Comparatively low levels of indebtedness Monetary stability coupled with a solid financial system Commitment to ensure social welfare and development

5. What other reasons to invest in Paraguay? Strategic geographic location Strategic geographic location Lower industrial and labor costs. Compare to the regional average Lower industrial and labor costs. Compare to the regional average Population structure mostly young and trainable workforce Population structure mostly young and trainable workforce Benefits and incentives for investing large foreign and domestic capital Benefits and incentives for investing large foreign and domestic capital Quick return on investment Quick return on investment Strong international presence, especially in grains and meat Strong international presence, especially in grains and meat Excess supply in clean energy Excess supply in clean energy Free Market access Free Market access

6. MAIN ECONOMICS LAWS APPROVED RECENTLY Laws Primary Goal Fiscal Responsibility Act (Law 5098/13) To contain current expenditure and set limits on the fiscal deficit (1% of GDP in the medium-term). A clear rule for wage increases is the public sector is established. Financial Administration Modernization Act (Law 5097/13) To provide measures to modernize the financial management of the state and establish a system of single account and Treasury debt securities. Public Private Partnership Act (PPP) (Law 5012/13) To establish standards and mechanism to promote through public-private partnership participation in public infrastructure investments. Agricultural Income Tax and VAT Reform Act (Law 5061/13) Sets a new settlement system of agricultural income tax on an accounting basis, on real income of producers. VAT exemptions on primary products is eliminated. Act establishing the ”State Owned Enterprises Board” (Law 5058/13) To establish a mechanism for managing, coordinating and implementing plans, programs and strategies to modernize and supervise the State Owned Enterprises. Public Works Act (Law 5074/13) It will enable the creation of partnership between the public and private sectors for the developments of projects for public works and services, and self-funded projects are regulated.

7. The Business Environment How Paraguay and comparator economies rank on the ease of doing business Source: Doing Business 2015 database. Distance to frontier scores on Doing Business topics - Paraguay

8. Simple Tax System Paraguayan tax system is based on four basic taxes: 1.Value Added Tax (VAT), 2.Corporate Income Tax (IRACIS); 3.Excise Tax (ISC), 4. Customs Tax. 4. Customs Tax. Other taxes have only a marginal impact. TaxPARAGUAYARGENTINAURUGUAYBRAZIL VAT0-5-1010-21-2722-1019 (average) IRACIS general rate 10 * 3524 15 - 25 Personal income tax8-109-3510-2515- 27,5 * The corporate income tax has a surcharge of 5% in the distribution of profits to shareholders of companies and 15% in the case of profit remittances abroad. Source: Centro Interamericano de Administraciones Tributarias (CIAT)

9. Paraguay, Country of Opportunities Thank you!