Apparel Sector in Guatemala Continues to Grow with IIC Support
Loan of US$330,000 to Argo Industrias S.A. will enable domestic and international expansion
Guatemala City, Guatemala, November 13, 2014 — A loan of US$330,000 from the Inter-American Investment Corporation (IIC) will help increase the capacity of Guatemalan company Argo Industrias S.A. The financing will also enable the company to improve the quality of its products, especially in its sublimation and screen printing areas. This family business has operated in Guatemala for 29 years producing, selling, and exporting apparel.
The loan was approved under FINPYME Credit, an IIC program for providing financing to small and medium-size enterprises (SMEs). The funding will enable it to purchase machinery and install 240 solar panels to meet its production plant’s power requirements.
“With this financing, the IIC contributes to Guatemala’s economic development while at the same time helping an SME improve its sales both domestically and in Central America, Panama, Belize, and the United States,” said Luisa Mayorga, IIC senior investment associate in charge of the operation. “It will also help the company become self-sufficient in terms of power generation with the installation of solar panels, expected to lead to monthly savings of approximately US$3,000.”
“Thanks to the IIC’s support, we will be able to substantially improve the quantity and quality of our products in areas such as laser cutting, screen printing, and sublimated garments, as well as improve the company’s management and governance. This will enable us to be more competitive in the school and sports uniforms markets in Central America and the United States,” said Eduardo Argueta, general manager of Argo Industrias S.A.
FINPYME Credit is a small-loans program that provides competitive financing to SMEs in Latin America and the Caribbean. The loans range from US$100,000 to US$600,000 and are available to businesses from various productive sectors. FINPYME Credit is offered in Guatemala, among other countries in the region, and supports small companies looking to increase their sales by providing financing for working capital as well as fixed assets.
About the IIC
The IIC, a member of the Inter-American Development Bank (IDB) Group, promotes private-sector development in Latin America and the Caribbean with a focus on SMEs. We help companies streamline management processes and provide them with financing in the form of equity investments, loans, and guarantees, as well as innovative technical assistance, advisory services, and knowledge products. In 2013, the IIC approved 71 operations totaling US$415.4 million. Since its inception in 1989, the IIC has approved more than 800 direct loans to SMEs and financial intermediaries, for a total of US$5.21 billion. An additional US$3.01 billion has been mobilized through cofinancing and syndication agreements. For more information on the IIC, visit www.iic.org.
Contact: Luisa Mayorga
Telephone: + (505) 2264-9140 in Managua, Nicaragua