IIC And Banco Interamericano De Finanzas S.A. Sign A US$3 Million Loan Agreement

03/27/2004

LIMA, PERU - On March 28, 2004, the Inter-American Investment Corporation (IIC) and Banco Interamericano de Finanzas (BIF) signed an agreement for a US$3 million loan that will provide financing for small and medium-size Peruvian enterprises through medium- and long-term loans for modernization and/or expansion projects. BIF is a financial institution that, since it began operations, has centered on providing financial intermediation services as a private commercial bank specializing in medium-size companies and personal banking.

The signing ceremony took place in Lima's Museo de la Nación during the annual meetings of the Boards of Governors of the Inter-American Development Bank and the Inter-American Investment Corporation. The loan agreement was signed by Mr. Raúl Baltar Esteves, Vice Chairman of the Board and General Manager of BIF, and Mr. Jacques Rogozinski, General Manager of the IIC, the Executive Director of the IIC for Peru, Mr. Jaime Pinto was also present.

With this transaction the IIC will promote the channeling of medium-term funding to small and medium-size companies that face difficulties in obtaining adequate financing for their operations. Approximately 75% of BIF's portfolio is concentrated in small and medium-size companies. BIF's access to a credit facility from the Corporation will also enable small and medium-size companies in Peru to adopt updated labor and environmental management practices. Eligible companies in the export, transportation, communications, and service sectors will receive subloans of up to US$500,000. Between six and ten small and medium-size companies are expected to benefit from this transaction.

The Inter-American Investment Corporation is a multilateral financial institution that is part of the Inter-American Development Bank 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 borrowing member countries by stimulating the establishment, expansion, and modernization of private enterprises, particularly those that are small and medium in size.

Contact: Jacques Rogozinski

Telephone: (202) 623-3901

Email: sylviasz@iadb.org