IIC Approved A $10 Million Loan To Banco Popular Dominicano And A $15 Million Agency Line To Provide Medium-And Long-Term Financing To Medium-Size Dominican Enterprises
11/30/2000WASHINGTON, D.C. - On December 1, 2000, the Board of Directors of the Inter-American Investment Corporation (IIC)1 approved a loan in the amount of $30 million to Banco Popular Dominicano C.A. consisting of a US$10 million "A" loan from the IIC and $20 million "B" loan from international commercial banks. The proceeds will be used to provide medium- and long-term financing to small and medium-size Dominican enterprises, mainly exporters, in the manufacturing, agribusiness, and service sectors, for expansion projects or the purchase of machinery and equipment, and for working capital. The IIC also approved an agency line of up to $15 million to be administered by Banco Popular Dominicano C.A. on behalf of the IIC. Banco Popular will identify and process individual loans to small and medium-size enterprises in the Dominican Republic for IIC's approval.
Given current market conditions, emphasis will be placed on companies operating in manufacturing, tourism, export, electricity, transportation, communications, and infrastructure sectors. In the case of the tourist industry, loans will only be granted for hotel construction and refurbishment. Projects considered in the industrial sector will include infrastructure construction, equipment purchases, reconversion, and process automation. In the electricity and telecommunications sectors, loans will be geared to procurement of equipment to improve electricity and telecommunications services, in line with the Dominican Republic's current thrust toward technological revamping in order to provide basic services for its citizenry. Loans for infrastructure projects shall be for financing the purchase of equipment and construction of facilities to improve services and foster development and distribution in productive regions, thereby boosting production, distribution, and the quality of life of the population, which is generating a very high demand for long-term loans.
The funds are expected to reach between 60 and 100 final beneficiaries. They will also help create between 600 and 1,000 jobs, between US$30 million and US$50 million in export earnings, and contribute between US$120 million and US$200 million to the Dominican GDP.
1 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. The IIC has thirty-six member countries: twenty-five in Latin America and the Caribbean and eight in Europe, plus the United States, Japan, and Israel. For further information on IIC's activities please contact Mr. Jorge Roldán at 202-623-3948.
Contact: Jorge Roldán
Telephone: (202) 623-3922