IIC Signs Agreement That Will Support The Development Of The Nicaraguan Economy

12/20/1999

WASHINGTON, D.C. — The Inter-American Investment Corporation (IIC) signed a loan agreement for up to $4 million and a subordinated loan agreement for up to $2 million with Banco de Crédito Centroamericano S.A. (Bancentro) in Nicaragua.

The signing ceremony took place in the country office of the Inter-American Development Bank (IDB) in Nicaragua. The document was signed by IDB Representative Martin Stabile for the IIC and by Roberto Zamora, President of Bancentro.

The funds from the IIC will further the development of small and medium-size Nicaraguan companies because, by means of subloans, Bancentro will provide them with medium and long-term financing that is otherwise scarce in Nicaragua. This financing will give the beneficiary companies access to funds for carrying out much-needed projects in sectors that will benefit the Nicaraguan economy. The subordinated loan will help Bancentro meet the new capital adequacy requirements and will thus help strengthen the private banking system.

The operation is expected to help create approximately 450 jobs, generate $30 million in foreign exchange each year, and contribute $30 million annually to Nicaragua's GDP.

Contact: Jean Philippe Prosper

Telephone: (202) 623-3959

Email: sylviasz@iadb.org