IIC Signs Agreement To Provide Long-Term Financing To Small And Medium-Size Honduran Companies

03/13/1999

Long-term loans will allow Banco Financiera Comercial Hondureña, S. A. to expand its lending activities in Honduras PARIS, FRANCE - The Inter-American Investment Corporation (IIC) signed an agreement for a $4 million senior loan and a $3 million subordinated loan with Banco Financiera Comercial Hondureña, S.A. (Ficohsa) of Honduras on the occasion of the Annual Meetings of the Boards of Governors of the IIC and the Inter-American Development Bank in Paris. The senior loan will provide small and medium-size Honduran enterprises with medium and long-term financing. The subordinated loan will strengthen Ficohsa’s capital structure and will also be used for on-lending to Honduran companies in productive sectors. It should also be noted that the subordinated loan will allow Ficohsa to become the first bank in Honduras to benefit from this type of financing.

The agreement was signed by Mr. John C. Rahming, General Manager of the IIC, and Mr. Camilo Atala, President of Banco Financiera Comercial Hondureña, S.A. at Le Palais des Congrès, Paris, on March 14, 1999.

Through IIC’s funding, Ficohsa will focus on lending to companies in the industrial and agribusiness sectors, which are in great need of medium and long-term funds to rebuild their productive capacity after Hurricane Mitch, as well as to take advantage of new business opportunities and contribute to the growth of the Honduran private sector.

The operation is expected to create 450 jobs, generate $15 million in foreign exchange, and contribute $45 million to the Honduran GDP.

Contact: Jorge Roldán

Telephone: (202) 623-3948

Email: jorgero@iadb.org