IIC Promotes The Costa Rican Manufacturing Sector
02/20/2006Washington, D.C.- On February 21, 2006, the Inter-American Investment Corporation (IIC) approved a loan of up to US$1 million to Corrugadora de Costa Rica S.A. ("Cocorisa"). The loan proceeds will be used to restructure up to US$1 million in short-term debt. Cocorisa is seeking to balance long-term and short-term bank debt. The proposed loan will enable the company to consolidate the recent introduction of modern production processes and best practices in order to enhance both the efficiency of its operations and its contribution to the local economy.
Cocorisa manufactures corrugated cardboard boxes and sheets from kraft liner paper or liner paper combined with medium paper. It has a successful track record of more than twenty-two years in manufacturing and selling its products in Central America. The corrugated cardboard packaging industry is of a strategic value for developing countries because it directly supports exports and indirectly drives domestic economic activity. The IIC loan will make it possible to improve the company’s cash flow by alleviating its financial burden and improving its debt structure. Cocorisa is a major employer in Costa Rica; it provides 163 direct jobs.
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 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: John Beckham/Rodrigo Elliot
Telephone: (202) 623-3984