ESEN To Work With IIC In El Salvador
03/24/2008The IIC will provide up to US$2 million for the program
Washington, D.C., U.S.A. - The Inter-American Investment Corporation (IIC) and the Escuela Superior de Economía y Negocios (ESEN) signed an agency agreement under which ESEN will operate as the IIC's agent in El Salvador to identify and evaluate small and medium-size companies for eligibility for IIC financing under the IIC's Small Business Revolving Line (SBRL) program. ESEN will also work with the IIC to close and disburse each loan and, once disbursed, supervise each beneficiary company on behalf of the IIC.
This agency program is innovative given that to date companies have been financed under the SBRL program only in those countries where the IIC has a local presence. Under this initiative in El Salvador, ESEN representatives will undergo IIC training in credit and noncredit (e.g., environmental, labor, and developmental impact) issues before beginning their work.
This agreement with ESEN is in line with the IIC's commitment to promote the economic development of SMEs in Latin America, mainly in Central America. According to Steven Reed, IIC Deputy General Manager: "Small companies often have limited access to credit and virtually no access to longer-term credit. Through the Small Business Revolving Line, the IIC provides long-term financing under appropriate terms and conditions to small companies. With the support of ESEN in El Salvador, the IIC will be able to better meet the needs of more small private companies, allowing them to grow, generate employment, and contribute to the economic development of the communities where they work."
The signing ceremony took place at the offices of the IIC in Washington, D.C. Rafael Barraza Domínguez, General Manager, signed for ESEN, and Jacques Rogozinski, General Manager, signed for the IIC.
The SBRL is a financial product with a streamlined approval process that enables the IIC to offer small, standardized loans to eligible small companies. The SBRL program is currently offered in Bahamas, Barbados, Bolivia, Costa Rica, Dominican Republic, El Salvador, Guyana, Haiti, Honduras, Jamaica, Nicaragua, Paraguay, Suriname, Trinidad and Tobago, and Uruguay. It targets private companies operating in the agribusiness, manufacturing, wholesale, retail, service, and construction sectors, as well as other sectors that contribute to the local economy.
The Inter-American Investment Corporation is a multilateral financial institution that is a member of the Inter-American Development Bank (IDB) Group. It provides financing (in the form of equity investments, loans, guarantees, and other instruments) and advisory services to private enterprises in Latin America and the Caribbean. The IIC’s mission is to promote the economic development of its regional member countries by encouraging the establishment, expansion, and modernization of private enterprises, particularly those that are small and medium in size. For more information on the IIC's activities, visit www.iic.int.
Contact: Johnny Jirón (in Nicaragua)
Telephone: + (505) 267-0831