IIC Grants Loan to Bancop for Financing SMEs in Paraguay’s Productive Sector
The funds will support about 30 SMEs from the country’s productive sector as well as rural producers
Washington, D.C. July 13, 2015 — The Inter-American Investment Corporation (IIC) approved a loan of up to US$2 million to Banco para la Comercialización y la Producción S.A. (Bancop) to expand its lending operations with Paraguayan small and medium-sized enterprises (SMEs) in the agricultural, livestock, commercial, industrial, and services sectors, thereby boosting agricultural and livestock production in Paraguay.
“The support from the IIC reflects the alignment of its goals and ours: to provide sustainable support to the productive sector in the form of medium- and long-term financing at competitive rates for SMEs and rural producers,” said Dimas R. Ayala R., Bancop’s director and general manager. “Bancop is proud to have the trust and support of such a prestigious international institution. It’s a seal of quality for us.”
“The goal of this IIC operation is to support Bancop’s lending activities to help it continue developing its lines of business aimed at productive-sector SMEs in Paraguay. The loan is expected to fund about 30 projects,” said Cristina Paredes, the IIC investment officer in charge of the operation.
Bancop is the first cooperative-owned bank in Paraguay. It currently has 27 producer cooperatives as shareholders. Bancop’s goal is to provide long-term funding to cooperatives, their members, and any other client interested in doing business with the bank, thus expanding their production capacity.
It is estimated that half of the micro, small, and medium-sized enterprises in Paraguay do not have adequate access to financing, and the financing available tends to be short-term. With the IIC’s support, Bancop will make financing more accessible and provide medium-term loans to local SMEs.
In addition to supporting operations with SMEs in Paraguay, the project will have a positive socio-economic and environmental impact, as all the subprojects will be subjected to environmental review and must comply with domestic environmental and labor laws, rules, and regulations, as well as with the IIC’s own environmental guidelines.
About the IIC
The IIC, a member of the Inter-American Development Bank (IDB) Group, promotes private-sector development in Latin America and the Caribbean with a focus on small and medium-sized enterprises (SMEs). The Corporation provides companies with financing in the form of equity investments, loans, and guarantees, as well as with innovative technical assistance, advisory services, and knowledge products. In 2014, the IIC approved 64 operations totaling $426.3 million. Since its inception, the IIC has approved more than 920 loan and equity investments for SMEs and financial intermediaries, for a total of US$5.63 billion. An additional $3.7 billion has been mobilized through cofinancing and syndication agreements. For additional information on the IIC’s activities, visit www.iic.org.
Contact: Cristina Paredes
Telephone: +(595 21) 616-2320