IIC Introduces Partial Credit Guarantees In Local Currency For The Education Sector In Venezuela
04/14/2004WASHINGTON, D.C. - On April 14, 2004, the Board of Directors of the Inter-American Investment Corporation (IIC) approved a credit guarantee in bolivares for an amount equivalent to US$2 million for Fundación Andrés Bello (FAB) and the Universidad Católica Andrés Bello (UCAB). IIC's participation will secure part of the mortgage loan that Banco Mercantil will grant both entities. The credit guarantee will be used to fund Universidad Católica Andrés Bello's new classroom building in Montalban, Caracas.
The introduction of a new product such as partial credit guarantees will help boost financial intermediation and increase the level of loans as a percentage of the assets of Venezuelan financial institutions. This is the Corporation's first operation in the Venezuelan education sector. In addition, a financial instrument such as a credit guarantee will help increase local credit available to sectors that are key for economic and social development and will have a demonstration effect that should make long-term credit more accessible to other educational institutions.
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 / Tomás Bermudez (in Washington D.C.)
Telephone: (202) 623-3907