IIC Indirectly Funds Forty Loans To Small And Medium-Size Costa Rican Passenger And Merchandise Transport Companies
10/09/2006Loan of up to US$1 million to Financiera Cafsa S.A. and Arrendadora Cafsa S.A.
Washington, D.C. - On October 10, 2006, the Inter-American Investment Corporation (IIC) approved a loan of up to US$1 million to Financiera Cafsa S.A. and Arrendadora Cafsa S.A. The loan will enable the two companies to meet the loan and operating lease needs of Costa Rican SMEs. Medium and long-term loans provided by these financial institutions will range from US$15,000 to US$50,000.
By supporting Financiera Cafsa S.A. and Arrendadora Cafsa S.A., the IIC will complement local financing by helping make medium-term financing available to SMEs in need of vehicles for production and to microentrepreneurs who provide services to the tourism industry.
According to Corporación Cafsa’s Executive Vice President Mr. Mauricio A. Gómez Picado, "Financial support from a fine institution like the Inter-American Investment Corporation is a wonderful opportunity for Grupo Financiero Cafsa. We will be able to provide our clients - especially those working in the tourism and agriculture sectors and those who are microentrepreneurs - with access to financing on suitable terms. This will allow them to compete in a globalized market and is key to the continuing development of our nation."
Two years ago, the IIC introduced a small bank program to expand access to appropriate sources of funding for small financial institutions that support SMEs. The transaction approved today is in line with this goal. The financial leasing system proposed by Financiera Cafsa S.A. and Arrendadora Cafsa S.A. is good for SMEs because guarantees are simpler and transaction costs are lower. This makes it possible to finance a higher percentage of the cost of investing in equipment than would be possible with a conventional loan.
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. The IIC’s mission is to promote the economic development of its regional 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, please visit www.iic.int.
Contact: Ana Cecilia Savastano (in Washington D.C.)
Telephone: (202) 623-3961