An IIC Loan To Credipyme, S.A. De C.V. Will Enhance Access To Credit By Individually- And Family-Owned Companies In Mexico

05/21/2007

A US$1 million loan will provide Credipyme with greater flexibility in its financial products, increase its volume of operations, and improve access to and terms of financing for small enterprises

Washington, D.C.- On May 22, 2007, the Inter-American Investment Corporation (IIC) approved a first loan of up to US$1 million to Credipyme, S.A. de C.V. (Credipyme). The loan proceeds will be used to support Credipyme’s portfolio growth by originating new business and increasing the amount of some existing loans. Credipyme expects to finance up to twenty operations with the funds provided by the IIC.

The terms of this IIC loan will afford Credipyme considerable flexibility in offering its clients medium-term financing solutions. Credipyme is a financial intermediary that provides its customers with high value-added services.

Credipyme is a credit union that is authorized, regulated, and supervised by Mexico’s banking and securities commission, Comisión Nacional Bancaria y de Valores (CNBV). In April 2005 it changed its business approach to become a financial intermediary specializing in the small and medium-size enterprise (SME) sector in Mexico. Credipyme rapidly managed to diversify its membership, which now exceeds 200 clients. It also developed innovative products targeted to SMEs and obtained funding from several financial institutions in Mexico. This is the first time that Credipyme has tapped an international source of medium-term funding. The transaction is expected to encourage other international financial institutions to provide medium- and long-term funding to Credipyme.

According to Carlos Roa, IIC Financial Institutions and Structured Finance Coordinator, "the scarcity of medium- and long-term sources of financing affects many small, specialized financial institutions in Mexico. This transaction seeks to encourage other institutions to emulate Credipyme's good practices and, above all, its focus on smaller companies, which, due to their informal structure and inability to provide security, are often unable to obtain financing."

The Inter-American Investment Corporation is a multilateral financial institution that is a member of the Inter-American Development Bank Group (IDB). 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 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: Carlos Roa/Rodrigo Navas (in Washington D.C.)

Telephone: (202) 623-3955

Email: carlosroa@iadb.org/rodrigon@iadb.org