LatinFinance - July/August 2014 - Paraguay Supplement - 5

President interview | PARAGUAY

country. So to reach the sea port, we have some expenses
that other countries do not have. Our big differential is to be
competitive in terms of tax.
LF: What about your intention to introduce a tax on
non-processed agricultural produce?
HC: Until a few months ago, soya bean producers paid
absolutely no tax. We just put a very low 5% tax levy. If you see
what our neighbors are paying, soya bean producers are almost
paying nothing at all. It is the first time in history that they are
paying taxes.

administration if this happened.
The percentage of people in poverty we had at the beginning
of the administration - between extreme poverty and poverty -
was 39.5%, but this figure has decreased.

HIGH EXPECTATIONS: former businessman
President Horacio Cartes says the pace was faster
in the private sector, but reform is happening in
Paraguay

LF: Legislation for public-private
partnerships was approved last year.
Are you satisfied with the pace at
which this is proceeding?
HC: I come from the private sector
and of course, the speed is much slower in
the public sector. I would like to say I feel
comfortable with the pace of things, but I
am confident we will put all our energy to
go as fast as we can.
Within a few months, we are going to start some
infrastructure works, and this is not going to stop. But the
starting point evidently is not that fast. Still, I am pretty sure we
are on the right track. We are not surprised. We were advised it
would be like this.
 
LF:  What are the main obstacles you face today?
HC: Bureaucracy. We have been working on it, and I have to
say that up to now, I have had all the help from Congress.
We still need to modernize the country, but I think we will
build all the roads we need, all the bridges we need. Our main
goal, as announced during the election campaign is the fight
against poverty.
I always say that even if we get all the new ports, airports,
bridges - with the same percentage of poor people, this will
absolutely be no good to us. I would put a very low grade to our

©REUTERS

LF: When do you think large
public-private partnerships, such as
the shipping upgrade on the Paraguay
River, will materialize?
HC: The country practically
breathes through this river. Some 90%
of commercial traffic goes through the
Paraguay River. They are starting. Of
course, the huge difference from the
private sector is that you have to follow
some rules and processes that you cannot
avoid. You have public tenders.
I think the country is having a really
nice time. It is unbelievable to see how
many companies are currently involved
in Paraguay; it makes us feel very
comfortable.  

"WE CAN LOOK FORWARD TO THE
FUTURE WITH MORE TRANQUILLITY
AND SERENITY AS, NOW, THERE ARE
LIMITS TO PUBLIC EXPENDITURES"
LF: Regarding Congress, a governability pact was
signed for a year. How confident are you that it will be
renewed?
HC: This is not a competition between the president and
Congress. We all have to push together. Up to now, I am thankful
that we have been working well. The country has already lost
too much time. We have no more time to lose. We now have to
make up for lost time.

July/August 2014 - L ATINFINA NCE.COM 5
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