IIC Approves A Loan Of Up To US$3 Million For Factoring In Chile
06/05/2006Washington, D.C. - On June 6, 2006, the Inter-American Investment Corporation (IIC) approved a loan of up to US$3 million to Eurocapital S.A. to finance the development of its factoring business.
The IIC loan will enable Eurocapital to factor export documents, in dollars or indexed to the dollar, issued by small and medium-size Chilean companies. Factoring has proven to be an effective tool enabling the IIC to channel credit to SMEs. With this operation, it will help Eurocapital obtain the resources it needs to increase its business of discounting the export sales documents issued by SMEs, thereby serving a greater number of Chilean companies in the foreign trade sector. In Chile there are at present some 100,000 small and medium-size companies of which barely 6,000 have access to formal factoring arrangements. Between twenty and forty small and medium-size companies are expected to benefit from this operation.
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 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: John Beckham/Ana María Orellana (in Chile)
Telephone: (202) 623-3984