IIC Approves A Loan To Banco Regional In Paraguay
06/01/2009Some thirty SMEs are expected to benefit directly from the loan
Washington, D.C. - On June 2, 2009, the Inter-American Investment Corporation (IIC) approved a loan of up to US$6 million to Banco Regional in Paraguay. Since it was founded, Banco Regional has focused on meeting the financing needs of southeastern Paraguay, where agriculture and livestock farming are the predominant activity. The bank currently employs 350 people in twenty-four branches throughout Paraguay.
This is the third IIC loan to Banco Regional, with which the IIC has had an excellent relationship since 2002.
The purpose of the loan is to provide Paraguayan SMEs with the medium- or long-term financing they need to carry out their operations. The proceeds will be used mainly to finance the purchase of fixed assets and machinery, as well as to finance working capital.
Financing on appropriate terms will make it possible to generate direct and indirect employment and improve the financial structure of SMEs, which currently have limited access to financing with terms of more than one year.
According to Santiago Cat, IIC investment officer in charge of the operation, "The demand for such loans among SMEs in Paraguay is high, but they are difficult to obtain. These companies need alternative financing like this to properly fund their operations, thus helping them increase their production capacity and improve their ability to compete internationally."
The IIC 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 2008, the IIC reached US$1.5 billion in assets and approved sixty-four operations channeling US$300.5 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: Santiago Cat (in Uruguay)
Telephone: + (598) 2915-3696