IIC Approves A Partial Credit Guarantee Program For Up To US$20 Million With Fondo Nacional De Garantías S.A. In Colombia
12/06/2005Washington, DC - On December 6, 2005, the Inter-American Investment Corporation (IIC) approved a partial credit guarantee program for up to US$20 million with Fondo Nacional de Garantías S.A. (FNG) in Colombia. Total IIC participation in the program will be up to US$10 million. The program seeks to increase access to credit for small and medium-size enterprises in Colombia and encourage intermediary financial institutions to provide them with financing for their investment and working capital needs.
Fondo Nacional de Garantías S.A. is a financial institution regulated by the Colombian government's bank regulatory agency Superintendencia Bancaria. FNG works chiefly with clients of intermediary financial institutions participating in the automatic business guarantee program or Programa Automático de Garantías Empresariales. The IIC and FNG will each guarantee 25% of individual loan amounts, and the financial intermediary granting the loan will assume exposure for the remaining 50%. This operation will increase the availability of credit to small and medium-size companies in Colombia, by increasing FNG's capacity to grant partial credit guarantees. The experience gained from this operation will serve as the basis for structuring similar operations in other Latin American and Caribbean countries. The operation is expected to benefit from 500 to 1,000 small Colombian companies.
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.
Contact: Carlos Roa/Javier Hernández-Fuentes
Telephone: (202) 623-3955