IIC Approves Up To US$3 Million For A Financing Program With A Beef Production Chain In Argentina
06/26/2006Washington, D.C. - On June 27, 2006, the Inter-American Investment Corporation (IIC) approved a loan of up to US$3 million to small and medium-size companies in Argentina guaranteed by Garantizar SGR (Garantizar). Garantizar is a mutual guarantee association (sociedad de garantía recíproca or SGR) that supports small and medium-size agribusiness and manufacturing companies with loan guarantees that enable them to obtain credit or other financing.
Small and medium-size cattle farmers do not usually have access to medium-term financing for working capital to manage the cattle raising and fattening cycle. Through the program, the IIC will provide direct financing alternatives for a supply chain in a key sector of Argentina's economy.
Garantizar SGR’s products have enabled participating small and medium-size companies to tap the capital markets to finance their supply chains by issuing debt securities on the Buenos Aires stock exchange. Garantizar also provides technical, economic, and financial consulting services to its members.
Participating small and medium-size companies will use the funding to raise, purchase, and fatten young cattle. Argentina is the third largest exporter of beef in the world, with yearly sales totaling US$6 billion. Some 600,000 tons of beef worth US$1.2 billion were exported in 2005. The domestic market is larger: nearly 2.6 million tons and US$4.8 billion.
The Inter-American Investment Corporation, a multilateral financial institution that is part of the IDB Group, 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: Javier Hernández/Carlos Roa
Telephone: (202) 623-3992