IIC Approves Loan Of Up To US$1,500,000 To Microfinanzas Del Uruguay, S.A.
06/30/2008At least 200 micro and small companies in Uruguay are expected to benefit from this transaction
Washington, D.C. - On July 1, 2008, the Inter-American Investment Corporation (IIC) approved a loan of up to US$1,500,000 to Microfinanzas del Uruguay, S.A., one of the first institutions to provide financial services to micro and small entrepreneurs in Uruguay.
Microfin's line of products includes loans for working capital and fixed asset investments, chiefly for micro and small enterprises in the commercial, production, and service sectors, as well as farm loans for micro and small agrolivestock entrepreneurs.
The loans designed by Microfin will enable medium-low- and low-income microentrepreneurs to tap financing for working capital and fixed asset investments that is currently limited to the medium-high and high socioeconomic strata. With this operation, the IIC will support a financial institution that wants to work with a segment of the population that is underbanked and located, above all, in the country's interior.
The loan proceeds will be used to provide short- and medium-term loans, denominated in local currency and in dollars, to micro and small businesses in Uruguay. Microfin's loans will average approximately US$2,500.
The IIC loan will be complemented with support from MIF in the form of a capital contribution of up to US$200,000 for 11.42% of Microfin's share capital and US$300,000 in technical assistance to strengthen a number of areas in the company including staff training and information systems improvements.
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: Santiago Cat (in Uruguay)
Telephone: + (598) 2915-3696