IIC Approves A US$7 Million Loan To Banco Bolivariano In Ecuador
09/26/2005Washington, D.C. - On September 27, 2005, the Inter-American Investment Corporation (IIC) approved a US$7 million loan for Banco Bolivariano C.A. to channel financing to small and medium-size companies in Ecuador. The first IIC loan to Banco Bolivariano, for US$5 million, was approved in November 2003 with a term of two years. The proceeds of the loan were used to finance expansion projects in six SMEs in the manufacturing industry in Ecuador.
The funds that Banco Bolivariano C.A. onlends to small and medium-size companies will be used to finance working capital and the acquisition of fixed assets. This loan will benefit companies that operate in the export, trade, manufacturing, and service industries. This operation will provide Banco Bolivariano with long-term funding for onlending to SMEs in Ecuador on terms that are not usually available on the market. Companies need such financing alternatives to carry out expansion projects that increase their production capacity and make them more competitive internationally. With this transaction the IIC will promote the channeling of medium-term funding to SMEs that face difficulties in obtaining adequate financing for their operations.
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
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