Identifier
Created
Classification
Origin
07ASUNCION481
2007-06-11 17:17:00
UNCLASSIFIED
Embassy Asuncion
Cable title:
PARAGUAY POLITICAL AND ECONOMIC UPDATE JUNE 2-8,
how-toVZCZCXYZ0004 RR RUEHWEB DE RUEHAC #0481 1621717 ZNR UUUUU ZZH R 111717Z JUN 07 FM AMEMBASSY ASUNCION TO RUEHC/SECSTATE WASHDC 5831 INFO RUCNMER/MERCOSUR COLLECTIVE RUMIAAA/USCINCSO MIAMI FL//SCJ3/SCJ33/SCJ34/SOCSO LNO// RHEHNSC/WHITE HOUSE NSC WASHDC RUEATRS/DEPT OF TREASURY WASHDC RUCPDOC/DEPT OF COMMERCE WASHDC RUEAIIA/CIA WASHDC
UNCLAS ASUNCION 000481
SIPDIS
SIPDIS
STATE FOR WHA/BSC, INL/LP (JIM HIDES)
EB/IFD/OIA
STATE PASS TO USAID FOR LAC/AA
STATE PASS TO USTR FOR LYANG
NSC FOR SUE CRONIN
TREASURY FOR OSIA MAUREEN WAFER
TREASURY FOR OTA WARFIELD, VAN KOCH, MILLAR
COMMERCE FOR ITA SARAH COOK
SOUTHCOM FOR POLAD
E.O. 12958: N/A
TAGS: PGOV PHUM PREL PA
SUBJECT: PARAGUAY POLITICAL AND ECONOMIC UPDATE JUNE 2-8,
2007
UNCLAS ASUNCION 000481
SIPDIS
SIPDIS
STATE FOR WHA/BSC, INL/LP (JIM HIDES)
EB/IFD/OIA
STATE PASS TO USAID FOR LAC/AA
STATE PASS TO USTR FOR LYANG
NSC FOR SUE CRONIN
TREASURY FOR OSIA MAUREEN WAFER
TREASURY FOR OTA WARFIELD, VAN KOCH, MILLAR
COMMERCE FOR ITA SARAH COOK
SOUTHCOM FOR POLAD
E.O. 12958: N/A
TAGS: PGOV PHUM PREL PA
SUBJECT: PARAGUAY POLITICAL AND ECONOMIC UPDATE JUNE 2-8,
2007
1. SUMMARY
-- Central Bank Regulates Street Money Changers
-- Tax Collection Climbs
-- USAID Launches Land Use Plan
CENTRAL BANK REGULATES STREET MONEY CHANGERS
2. (U) The Central Bank granted permits to about 200 street
money changers and is expected to grant 200 more permits by
mid-June. The permits are based on a 2005 law regulating
money exchange houses. The press estimates that there are as
many as 3,000 informal money changers operating in Paraguay.
They usually operate independently and offer small-scale,
informal currency exchange on street corners. Central Bank
regulations require that licensed operators work on their own
account, use only cash, operate in public zones, and limit
transactions to less than USD 10,000. The Central Bank
commented that those money changers without permits are
operating illegally. A representative of the money changers
was quoted in the press saying that the unlicensed money
changers will request a more flexible law and will continue
working with or without permits.
TAX COLLECTION CLIMBS
3. (U) The GOP continues to show significant advances in tax
compliance and collection. In May, tax collections hit an
all-time high and represented a 22 percent increase over last
year,s total. The MCA Threshold program is assisting the
Finance Ministry and the Tax service,s efforts in particular
on business tax compliance.
USAID LAUNCHES LAND USE PLAN
4. (U) The Environment Minister Carlos Antonio Lopez Dose,
the Governors of Alto Paraguay (Erasmo Rodriguez Acosta) and
Boqueron (David Sawatzky Funk),civil society leaders and
other public officials participated in the launch of a new
USAID-supported land use plan for the Alto Paraguay
Department June 5. Alto Paraguay is the largest of the 17
departments in Paraguay, sparsely populated, but home for
much of the country,s biodiversity and its protected areas.
The land use plan was developed to serve as a tool for both
public and private entities to encourage growth and use of
natural resource in a sustainable manner. USAID support is
also coordinated with the European Union and Germany
technical assistance (GTZ) and provided through a local NGO
Fundacion DesdelChaco, a key partner in our efforts to
protect Paraguay,s biodiversity.
FITZPATRICK
SIPDIS
SIPDIS
STATE FOR WHA/BSC, INL/LP (JIM HIDES)
EB/IFD/OIA
STATE PASS TO USAID FOR LAC/AA
STATE PASS TO USTR FOR LYANG
NSC FOR SUE CRONIN
TREASURY FOR OSIA MAUREEN WAFER
TREASURY FOR OTA WARFIELD, VAN KOCH, MILLAR
COMMERCE FOR ITA SARAH COOK
SOUTHCOM FOR POLAD
E.O. 12958: N/A
TAGS: PGOV PHUM PREL PA
SUBJECT: PARAGUAY POLITICAL AND ECONOMIC UPDATE JUNE 2-8,
2007
1. SUMMARY
-- Central Bank Regulates Street Money Changers
-- Tax Collection Climbs
-- USAID Launches Land Use Plan
CENTRAL BANK REGULATES STREET MONEY CHANGERS
2. (U) The Central Bank granted permits to about 200 street
money changers and is expected to grant 200 more permits by
mid-June. The permits are based on a 2005 law regulating
money exchange houses. The press estimates that there are as
many as 3,000 informal money changers operating in Paraguay.
They usually operate independently and offer small-scale,
informal currency exchange on street corners. Central Bank
regulations require that licensed operators work on their own
account, use only cash, operate in public zones, and limit
transactions to less than USD 10,000. The Central Bank
commented that those money changers without permits are
operating illegally. A representative of the money changers
was quoted in the press saying that the unlicensed money
changers will request a more flexible law and will continue
working with or without permits.
TAX COLLECTION CLIMBS
3. (U) The GOP continues to show significant advances in tax
compliance and collection. In May, tax collections hit an
all-time high and represented a 22 percent increase over last
year,s total. The MCA Threshold program is assisting the
Finance Ministry and the Tax service,s efforts in particular
on business tax compliance.
USAID LAUNCHES LAND USE PLAN
4. (U) The Environment Minister Carlos Antonio Lopez Dose,
the Governors of Alto Paraguay (Erasmo Rodriguez Acosta) and
Boqueron (David Sawatzky Funk),civil society leaders and
other public officials participated in the launch of a new
USAID-supported land use plan for the Alto Paraguay
Department June 5. Alto Paraguay is the largest of the 17
departments in Paraguay, sparsely populated, but home for
much of the country,s biodiversity and its protected areas.
The land use plan was developed to serve as a tool for both
public and private entities to encourage growth and use of
natural resource in a sustainable manner. USAID support is
also coordinated with the European Union and Germany
technical assistance (GTZ) and provided through a local NGO
Fundacion DesdelChaco, a key partner in our efforts to
protect Paraguay,s biodiversity.
FITZPATRICK