IIC Increases Financial Support For Mexico'S Agricultural Sector
09/08/2008More than 1,500 small producers will benefit from this operation
Washington, D.C. - On September 9, 2008, the Inter-American Investment Corporation (IIC) approved a loan of up to US$5 million to Almacenadora Mercader, S.A. de C.V. (ALMER), a leading grain warehouser in Mexico.
This operation, IIC’s third with ALMER, consists of increasing financing for the existing grain storage program to benefit small farmers. ALMER will use the resources of the IIC loan to provide financing to small producers by either purchasing their production with an option to repurchase or warehousing it until it is sold. This will benefit small growers by giving them access to competitive sources of credit, modern distribution systems, and hedging instruments.
For individual farmers it would be very difficult to hedge the price of their production. This loan will be used to further the success of the previous operations, which were used to finance 307 operations for a total amount of US$88.5 million and help 5,901 corn producers organized in cooperatives.
ALMER has facilities in 21 states covering rural areas; it directly operates 14 warehouse complexes in 8 states and licenses 162 smaller ones in 13 states. In addition to the jobs that it creates directly, it supports small and micro enterprises through the licensing program. Furthermore, ALMER provides research and development aimed at increasing productivity and crop yields, and improving distribution for small producers.
The Inter-American Investment Corporation is a multilateral financial institution that is a member of the Inter-American Development Bank (IDB) 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. In 2007, the IIC reached US$1.2 billion in assets and approved 62 transactions channeling US$470 million to SMEs in the region. The IIC’s mission is to promote the economic development of its regional member countries by encouraging 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, please visit www.iic.int.
Contact: David Levy (in Washington, D.C.)
Telephone: (202) 623-3969