IIC And The Central American Bank For Economic Integration Sign A US$40 Million Regional Program

03/30/2004

LIMA, PERU - On March 29, 2004, the Inter-American Investment Corporation (IIC) and the Central American Bank for Economic Integration (CABEI) participated in a signing ceremony for a US$40 million parallel program that targets small and medium-size companies. The program is regional in scope. The IIC will participate with US$20 million, and CABEI with the other US$20 million. CABEI is one of the principal sources of multilateral financing for economic, social, and institutional development programs in Central America, both for promoting private investment and for strengthening public investment, sustainable development, and infrastructure.

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. Participating in the ceremonial signing were Dr. Harry Brautigam, President of the Central American Bank for Economic Integration, and Mr. Jacques Rogozinski, General Manager of the IIC. Also present at the ceremony were IIC Executive Director for Central America, Mr. José Carlos Castañeda, and, from CABEI, Dr. Nick Rischbieth Glöe, Chief Financial Officer, and Mr. Roberto Pereira, Head of the International Finance Department.

With this transaction the IIC seeks to establish a joint program that will provide long-term financing directly to small and medium-size private enterprises in Central America. The program will preferably support export-oriented projects and is expected to reach ten to fifteen firms, promoting trade in Central American countries, creating two hundred to three hundred jobs, and generating US$18 million to US$36 million in foreign exchange earnings.

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