IIC loan of up to US$5 million to the largest savings and credit cooperative in Chile to benefit more than 160 micro and small enterprises

04/18/2011

Washington, D.C. - On April 19, 2011, the Inter-American Investment Corporation (IIC) approved a loan of up to US$5 million to Cooperativa del Personal de la Universidad de Chile Limitada (Coopeuch). The loan will be used to provide financing to microentrepreneurs and small enterprises in Chile in the form of loans of up to US$30,000 per elegible enterprise, with terms of not less than 12 months.

Coopeuch was established in 1967. It provides personal banking products to its members, most of whom earn less than US$700 per month. It operates primarily in the public sector under a payroll deduction scheme, and takes in deposits from its members and third parties. For more information on Coopeuch, please visit www.coopeuch.cl

According to Santiago Cat, IIC Investment Officer in charge of the operation, "With this operation the IIC is supporting the financial sector by providing Coopeuch with tools to carry out its growth and positioning strategy and create effective mechanisms for channeling loans to micro and small enterprises in Chile. These loans will be used to purchase fixed assets or machinery, or for capital expenditures, working capital, or other productive purposes, thereby increasing the beneficiary enterprises’ production capacity and improving their ability to compete."

About the IIC

The IIC is a multilateral financial institution that is a member of the Inter-American Development Bank (IDB) Group. 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. It does so by providing financing (in the form of equity investments, loans, guarantees, and other instruments) and advisory services to private enterprises in Latin America and the Caribbean. In 2010, the IIC reached US$1.4 billion in assets and approved forty-nine operations channeling US$374.8 million to SMEs in the region. For more information on the IIC’s activities, please visit www.iic.int

Contact: Santiago Cat (in Uruguay)

Telephone: + (598) 2915-3696

Email: santiagoc@iadb.org