IIC Launches A Local Currency Guarantee Program With A Brazilian Bank For Up To US$2.4 Million
09/26/2005Washington, D.C. - On September 27, 2005, the Inter-American Investment Corporation (IIC) approved a local currency guarantee program of up to US$2.4 million with Banco Sofisa S.A. The purpose of the program is to provide working capital for small and medium-size Brazilian companies. The operation seeks to help fulfill the Nuevo León mandate to triple the resources channeled by the IDB Group to micro, small, and medium-size companies in Latin America and the Caribbean by 2007.
The Corporation will provide local-currency guarantees totaling up to the equivalent in reais of US$2 million for loans granted by Banco Sofisa to eligible SMEs. Banco Sofisa S.A., headquartered in São Paulo, offers commercial and retail banking products primarily to small and medium-size Brazilian companies. Through this transaction, the Corporation will support a financial institution that seeks to expand its service for SMEs using the partial guarantee from the IIC. The guarantee will enable Banco Sofisa to make larger loans to SMEs than it would otherwise be able to do. The proposed program is expected to reach between twenty and thirty SMEs during its initial pilot phase.
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
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