IIC Approves Financing For SMEs In Guatemala Through Financiera De Occidente, S.A
10/20/2008With this operation the IIC seeks to improve access to appropriate sources of credit
Washington, D.C. – On October 17, 2008, the Inter-American Investment Corporation (IIC) approved a loan of up to US$3 million to Financiera de Occidente, S.A. (Fidosa). Fidosa is a financial institution whose core business consists of placing trust, mortgage, and pledge loans with terms of more than three years. Fidosa has a sound, recognized track record in trust management, private pension funds, real estate projects, and other types of investment that require specialized financial services. It also has recognized experience in investment banking operations per se, such as debt and capital structuring, feasibility studies, company valuations, securitization, and business strategy advisory services.
Fidosa belongs to Grupo Financiero de Occidente, a Guatemalan-owned group with which the IIC has had a business relationship for ten years.
The IIC loan will enable Fidosa to grant medium- and long-term subloans to Guatemalan SMEs. It is expected that at least ten small and medium-size enterprises will receive loans through this operation.
Above all, the IIC’s participation is expected to demonstrate not only that small financial intermediaries are eligible for credit from multilateral institutions but also that the types of financing offered to SMEs should be expanded to include medium-term financing for purchasing fixed assets and for permanent working capital. The latter is difficult for SMEs to obtain in the Guatemalan market.
The Inter-American Investment Corporation is a multilateral financial institution that is a member of the Inter-American Development Bank (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. In 2007, the IIC reached US$1.2 billion in assets and approved 62 transactions channeling US$470 million to SMEs in the region. The IIC’s mission is to promote the economic development of its regional member countries by encouraging the establishment, expansion, and modernization of private enterprises, particularly those that are small and medium in size. For more information on the IIC’s activities, please visit www.iic.int.
Contact: Gustavo Romero (in Washington D.C.)
Telephone: (202) 623-3855