IIC Approves Second US$1 Million Loan To Banco Regional S.A. Of Paraguay
08/07/2006Washington, D.C. - On August 8, 2006, the Inter-American Investment Corporation (IIC) approved its second loan to Banco Regional S.A. (Banco Regional) of Paraguay for US$1 million. The project consists of a medium-term loan allowing Banco Regional to grant medium-term subloans to small and medium-size enterprises in Paraguay.
This is the IIC’s second operation with Banco Regional. In 2003 the IIC made its first loan to Banco Regional, which had a very positive impact. Significant benefits were reported for wheat and soybean farmers and agrobusinesses. The funds were mainly used to purchase agricultural machinery and equipment. Banco Regional's efficient handling of the first loan led to this second operation. The IIC is considering additional ways of supporting Banco Regional, which are expected to be formalized in the third quarter of this year.
This operation was presented under a new initiative designed to increase the number of sources and the volume of financing for small banks that serve the needs of small and medium-size enterprises.
The loan proceeds will help eligible companies acquire equipment and finance permanent working capital. Some twenty-five small and medium-size enterprises are expected to benefit from this operation, receiving loans ranging from US$30,000 to US$50,000. Banco Regional has focused on efficiently satisfying the financial needs of southeastern Paraguay by offering support mainly to farmers and agrobusinesses. In Paraguay, the IIC also offers financing for the financial, agricultural, agribusiness, transportation, and tourism sectors, among others.
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: Carlos Roa (in Washington D.C.)
Telephone: (202) 623-3955