IIC and Multilateral Investment Fund sign Memorandum of Understanding for Promoting Financing to SMEs

04/18/2004

WASHINGTON, D.C. - On March 31, 2004, in keeping with the goals advanced during the Special Summit of the Heads of State and Government of the Americas in their Declaration of Nuevo León, the Inter-American Investment Corporation (IIC) and the Multilateral Investment Fund (MIF) signed a memorandum of understanding to continue to work together and launch innovative joint programs that will provide financing to small and medium-size companies through financial intermediaries and foster the implementation of good corporate governance practices in the sector.

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 memorandum of understanding was signed by Mr. Enrique Iglesias, President of the IDB, which administers MIF, and Mr. Jacques Rogozinski, General Manager of the IIC.

The Declaration of Nuevo León, signed in January 2004, stresses the need to expand private financing for small and medium-size companies through the IDB Group and to triple, by the year 2007, the financial support provided to micro, small, and medium-size enterprises. MIF and the IIC will work together in analyzing the current obstacles to the expansion of lending to the region's small and medium-size companies through financial intermediaries. MIF and the IIC will identify private financial institutions willing to commit human and financial resources to the development of financing programs for small and medium-size companies that could benefit from technical assistance provided by MIF and from IIC financing and sector knowledge. Good corporate governance practices and the adoption of acceptable legal, accounting, and organizational standards by small and medium-size businesses could improve their access to financing. MIF and the IIC will thus develop appropriate corporate governance criteria and guidelines for small and medium-size companies and support their implementation.

Contact: Jacques Rogozinski

Telephone: (202) 623-3901

Email: sylviasz@iadb.org