IIC Approves A US$60 Million Co-Financing Program With Corporación Andina De Fomento

03/08/2005

Washington, D.C. -- On March 9, 2005, the Inter-American Investment Corporation (IIC) approved a US$60 million co-financing program with Corporación Andina de Fomento (CAF) to small and medium-sized enterprises in beneficiary members countries common to both CAF and the IIC. The program will provide financing of up to US$5million per individual project, to support export operations, acquisition of equipment and infrastructure, increases in productive capacity, and long-term financing of fixed assets.

Through this collaborative effort, the program is expected to benefit between ten and twenty businesses in the region. The IIC and CAF will coordinate the implementation of the program through parallel financing of operations, jointly identifying, evaluating, structuring, and supervising the loans and benefiting from their respective sector and regional expertise. In identifying potential projects, priority will be given to sectors which have a higher development impact regarding aggregate demand growth and employment generation in the home country. Sectors, not exclusively, include tourism, agribusiness, infrastructure, food and beverages, and electricity generation. This co-financing project underlines the IIC’s commitment to strengthening its relationships with fellow multilateral institutions operating in the region.

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.

Contact: Tomás Bermúdez/Sotero Arizu

Telephone: (202) 623-3907

Email: tomasb@iadb.org