IIC Approves A Loan To Financiera Nicaragüense De Desarrollo S.A.

09/22/2004

Washington, D.C. – On September 22, 2004, the Inter-American Investment Corporation (IIC) approved a loan of up to US$900,000 to Financiera Nicaragüense de Desarrollo S.A. (FINDESA) so that this Nicaragua-based institution can respond to the financing needs of Nicaraguan micro-, small and midsize enterprises in need of funding for working capital or purchases of equipment, machinery, or other fixed assets.

FINDESA is a small microlender whose main shareholders are NGOs and financial and multilateral institutions. The loan seeks to serve the large portion of the market that operates under severe credit restrictions. FINDESA's financing activities are targeted to the rural and urban sectors of micro-, small, and midsize enterprises through a network of branches in remote locations. As many as 55% of the recipients of FINDESA's loans are women. The transaction will provide financing to an estimated 1,500 micro-, small and midsize enterprises in Nicaragua. IIC’s financing will complement the investment made by the Multilateral Investment Fund (MIF) in FINDESA's capital stock in 2003.

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.

Contact: Steven Reed/Ana Cecilia Savastano

Telephone: (202) 623-3981

Email: stevenr@iadb.org