IIC Approves A Loan Of Up To US$1 Million To A Costa Rican Finance Company
10/10/2005Washington, D.C. - On October 11, 2004, the Inter-American Investment Corporation (IIC) approved a loan of up to US$1 million to Financiera Multivalores S.A. of Costa Rica. The loan will be used to fund the growth of the residential mortgage portfolio; the residential mortgages will be secured by the housing units themselves. The proceeds of the loan will be used to provide financing for home purchase, construction, and improvement. Through this operation, Financiera Multivalores will have access to medium-term funding to promote this line of business.
Financiera Multivalores is a non-bank financial institution whose main focus is to meet the need for personal and mortgage loans. Multivalores operates exclusively in the domestic market and targets the middle-class population of Costa Rica's Valle Central and, to a lesser extent, midsize businesses in the same area. The financing provided by the IIC will make it possible to build some forty housing units. The construction sector is one of the main engines of economic activity and has a significant multiplier effect as a source of jobs and of demand for goods and services related to the housing industry in Costa Rica. Many of these services are provided by small and medium-size manufacturers and contractors. By helping consolidate a liquid secondary mortgage market in Costa Rica, the project will improve the quality of life for low and middle-income families by making it easier for them to purchase better homes in better locations.
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. For more information on the IIC's activities, visit its Web site at www.iic.int.
Contact: Steven Reed/Ana Cecilia Savastano
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