IIC Establishes A US$20 Million Cofinancing Program With Banco De Inversion Y Comercio Exterior S.A. (BICE) In Argentina

10/27/2004

WASHINGTON, DC –On October 27, 2004, the Inter-American Investment Corporation (IIC) approved a US$10 million program with Banco de Inversión y Comercio Exterior S.A. (BICE) for the direct confinancing of investment projects and to provide long-term financing to small and medium-size companies in Argentina. BICE will provide the other US$10 million. The IIC/BICE program seeks above all to enhance business management competitiveness in order to boost profitability and promote exports.

The projects to be funded will be primarily expansion operations connected with the export sector. In particular, the financing may be used for prefinancing exports or for equipment, civil engineering, or installation of long-term fixed assets. It is expected that the program will make it possible to provide funding to some four to twenty companies, helping create one hundred jobs, generating US$20 million to US$60 million in annual export revenues, and contributing US$80 million per year to Argentina’s GDP. Successful execution of the program may lead to similar parallel financing programs 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. For more information on the IIC's activities, visit its Web site at www.iic.int.

Contact: Sotero Arizu

Telephone: (202) 623-3907

Email: soteroa@iadb.org