Paz won the second round of the presidential election in October with 55 percent of the vote, against right-wing candidate Jorge “Tuto” Quiroga.
58-year-old Paz's campaign slogan was "capitalism for all" and he has promised, among other things, lower taxes and budget discipline, but also the preservation of certain social programs.
He has also promised a rapprochement with the United States.
The countries will now restore their diplomatic relations, Paz announced after he was sworn in, which was confirmed by the American side.
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