The Economy Of Honduras Will Be Supported By IIC's Funding To Banco La Capitalizadora Hondureña, S.A

09/19/1999

Small and medium-size companies in Honduras will have access to affordable financing WASHINGTON, D.C. - On September 10, 1999, the Board of Directors of the Inter-American Investment Corporation (IIC) approved a $7 million loan to Banco La Capitalizadora Hondureña, S.A. (BANCAHSA) in Honduras. This is the IIC's second transaction with BANCAHSA, who successfully placed a $3.5 million loan provided by the IIC in 1994 that financed eleven Honduran small and medium-size enterprises.

IIC's funding will support small and medium-size enterprises in Honduras through a solid and highly regarded commercial bank with a proven track record in project lending. It is expected that through this operation BANCAHSA will be able to finance some 20 small and medium-size companies.

In addition, the funding is expected to create employment and generate foreign exchange income and/or savings of foreign currency to support the reconstruction and expansion of the Honduran economy after the devastating effects of Hurricane Mitch.

Contact: Steven Reed

Telephone: (202) 623-3981

Email: stevenr@iadb.org