IIC Loan Supports Micro, Small, and Medium-sized Enterprises in Nicaragua

10/01/2013

Loan of up to US$500,000 to Financiera FAMA S.A. will provide financing for Nicaragua’s productive sectors

Guadalajara, Mexico, October 1, 2013 — The Inter-American Investment Corporation (IIC) will finance micro, small, and medium-sized enterprises (MSMEs) in  Nicaragua’s productive sectors through a loan of up to US$500,000 to Financiera FAMA S.A.

The two institutions signed the loan agreement on the occasion of the Inter-American Forum on Microenterprise (Foromic), one of the most important international meetings of the microfinance sector, which opened yesterday in Guadalajara, Mexico, with more than 1,500 participants.

“MSMEs constitute a critical link in the development of the Nicaraguan economy. Consequently, the IIC is committed to supporting MSMEs, providing them with financing tools designed to foster optimal conditions for their growth and prosperity,” noted IIC general manager Carl Muñana.

“In addition to providing entrepreneurs and microentrepreneurs with greater access to the financing necessary to grow and prosper, this particular loan will help us diversify our sources of medium-term financing,” added Víctor Tellería, general manager of Financiera FAMA. “We will use the IIC funding to expand our current base of more than 43,500 active clients.”

A financial institution specializing in microfinance, Financiera FAMA is regulated by the Nicaraguan superintendency of banks. Operating in the Nicaraguan market for the past 21 years, Financiera FAMA has a network of 23 branch offices—seven in Managua and the remainder in smaller cities and towns throughout the country.

Back in 2002, Financiera FAMA was Nicaragua’s first financial institution to win the Excellence in Microfinance Award of the Inter-American Development Bank (IDB). In 2004, Financiera FAMA won the first regional Microfinance Management Award from the Central American Bank for Economic Integration and received a certificate of transparency (2005) from the IDB and the Microfinance Information Exchange—an organization that provides microfinance data and analysis.

About the IIC

The IIC, a member of the Inter-American Development Bank Group, promotes private-sector development in Latin America and the Caribbean with a focus on small and medium-sized enterprises (SMEs). We help companies streamline management processes and provide them with financing in the form of equity investments, loans, and guarantees. In 2012, the IIC approved 73 operations totaling US$378.9 million. Throughout our history, we have approved nearly 800 direct loans to SMEs and financial intermediaries, for a total of US$4.8 billion. An additional US$2.8 billion has been mobilized through cofinancing and syndication agreements. For more information on IIC activities, visit www.iic.org.

Contact: Michael C. Apel

Telephone: +1 (202) 623-2521

Email: michaela@iadb.org