IIC and NAFIN Sign Agreement for Guarantee Program for Supply Chain Financing in Mexico of up to US$20 Million
MILAN, Italy – The Inter-American Investment Corporation (IIC) today signed an agreement committing $20 million to a guarantee program for supply chain financing with Nacional Financiera S.N.C. (NAFIN), Mexico’s largest development bank and leader in providing financing to small enterprises that supply goods and services to public sector agencies and first-tier companies.
The signing ceremony was held at the Fiera Milano Congressi Centre during the Annual Meetings of the Boards of Governors of the Inter-American Development Bank and the IIC. NAFIN Deputy Director for Development Federico Patiño Márquez and IIC General Manager Jacques Rogozinski signed the agreement in the presence of Mexico Finance and Public Credit Secretary Francisco Gil Díaz and IDB President and IIC Chairman of the Board of Directors Enrique V. Iglesias.
The program will channel up to $200,000 per beneficiary to small suppliers of first-tier companies operating in a variety of productive sectors throughout Mexico, thereby benefiting enterprises that generate employment and produce goods that are essential for the economy in a number of regions.
It is expected that the guarantee program will reach between 500 and 800 beneficiaries throughout its projected seven-year life. Accordingly, it is expected that the program will contribute to the creation of between 2,500 and 4,000 jobs, in addition to generating annual export revenue valued at between $15 million and $25 million and contributing between $100 million and $150 million annually to Mexico’s gross domestic product.
The Inter-American Investment Corporation is a multilateral financial institution that is part of the 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 borrowing member countries by stimulating the establishment, expansion, and modernization of private enterprises, particularly the small- and medium-size businesses.
Contact: Jacques Rogozinski
Telephone: (202) 623-3901