IIC Approves Loan To Financiera Cafsa S.A. And Arrendadora Cafsa S.A. In Costa Rica

09/14/2009

The loan is expected to help finance eligible projects with Costa Rican companies for up to US$300,000 each

Washington, D.C. - On September 15, 2009, the Inter-American Investment Corporation (IIC) approved a loan of up to US$2,000,000 to Financiera CAFSA S.A. and Arrendadora CAFSA S.A., in two tranches: one in the amount of US$1,500,000 and one in the amount of US$500,000.

Financiera CAFSA S.A. focuses on offering services to the SME and microentrepreneur market and to middle-class wage earners for financing car purchases. Arrendadora CAFSA leases vehicles to SMEs and microentrepreneurs for providing passenger and freight transportation services to different economic sectors. It is one of the few companies in this line of business that offers its clients such complementary services as vehicle maintenance and servicing, payment of vehicle licensing and registration fees, vehicle locator systems, and accident replacement vehicles.

This is the IIC’s second operation with CAFSA. The loan proceeds will enable Financiera CAFSA and Arrendadora CAFSA to provide subloans to small and medium-size companies and microentrepreneurs in metropolitan San José and Zapote and in the rural areas of Liberia, San Carlos, and Pérez Zeledón. The loan will thus help eligible companies finance their fixed asset purchase needs, especially for vehicles, to be able to operate in such productive sectors as services, trade, transportation, and tourism.

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: Margarita Rincón (in Colombia)

Telephone: + (571) 325-7058

Email: margaritari@iadb.org