IIC Approves A US$20 Million Regional Loan To BAC International Bank, Inc. (BAC Holding)
10/27/2004WASHINGTON, D.C. On October 27, 2004, The Inter-American Investment Corporation (IIC) approved a US$20 million regional loan to BAC International Bank, Inc. (Grupo BAC-Credomatic) to provide short-, medium-, and long-term financing, primarily to small and medium-size companies in Panama, Nicaragua, Costa Rica, Guatemala, Honduras, and El Salvador. The loan will enable BAC to grant medium- and long-term subloans and promote leasing as a financial instrument for supporting the growth of small and medium-size companies in Central America.
The proceeds from the facility will be transferred and used by Grupo BAC banks in Central America. Small and medium-size Central American companies have limited access to medium-term and, especially, long-term funding. The credit line provides for a variety of financing possibilities, including operating and financial leases. The funding may be used for financing working capital, trade finance, corporate loans, and medium- and/or long-term project finance. It is expected that the loan will benefit up to 80 small and medium-size companies and help generate more than 150 jobs and US$40 million in export revenue each year.
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/Gustavo Romero
Telephone: (202) 623-3981