IIC Approves A US$50 Million Loan To Banco Safra, S.A. In Brazil
The loan will be used to provide trade finance for small and medium-size enterprises in BrazilWASHINGTON, D.C. On July 23, 2003, the Board of Directors of the Inter-American Investment Corporation (IIC) approved a US$50 million loan to Banco Safra S.A. in Brazil. The IIC will provide up to US$15 million of the total amount; the remaining US$35 million will come from international finance institutions that participate in IIC's cofinancing program. The A loan will have a repayment term of 2 years, and the B loan a repayment term of one year, renewable for an additional year. The proceeds will be used to provide trade finance for Brazilian companies (including pre- and post-export financing and import financing). It is expected that between 80 and 100 small and medium-size enterprises will benefit from this operation.
The IIC funds will support the revitalization of manufacturing industries, which will result in increased production and employment; provide financing for the acquisition of raw materials, spare parts and other imported factors of production; and generate foreign exchange, by continuing to produce and export goods.
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, securities 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.
Contact: Steven Reed/Michael Apel
Telephone: (202) 623-3981