IIC Signs The First Operation Under The Program For Funding Specialized Financial Institutions In Mexico (IFEM)

10/24/2007

The US$1.15 million IIC loan to HIR PYME S.A. de C.V. SOFOL will provide funding for Mexican SMEs

Mexico City, Mexico - On October 24, 2007, the Inter-American Investment Corporation (IIC) and HIR PYME S.A. de C.V. SOFOL signed a loan agreement of up to US$1.15 million that will be used to provide funding for small and medium-size companies (SMEs) in Mexico, especially through lines of credit for working capital and medium- and long-term loans for asset purchases. This operation is carried out under the IFEM Program approved by the Board of Executive Directors this past August.

The US$30 million IFEM program enables financial institutions in Mexico specializing in micro, small, and medium-size enterprises to offer more flexible financial products, increase their volume of operations, and provide their clients with improved access to financing. The program benefits IFEMs including limited scope financial institutions (Sociedades Financieras de Objeto Limitado, or Sofoles), multiple purpose financial companies (Sociedades Financieras de Objeto Múltiple, or Sofomes), credit unions, and factoring and financial leasing companies, in particular those that serve SMEs. It is estimated that during the first phase of the program fifteen specialized institutions will receive support from the IIC. Five other operations are currently under evaluation under the program and it is expected that the IIC will sign and disburse them before the end of the year.

HIR PYME is a Sofol that specializes in supporting small and medium-size entrepreneurs through loans tailored to their needs. It focuses on specialized financial programs to support the customer-supplier value chain in specialized industries such as autoparts, metalworking, and technology.

The agreement was signed in Mexico City, DF. Carlos Fuentevilla, General Manager, and Justino Hischhorn, Chairman, signed for HIR PYME S.A. de C.V. Cecilia Rojas, local counsel holding a power of attorney granted by the IIC, signed for the Inter-American Investment Corporation.

The Inter-American Investment Corporation is a multilateral financial institution that is a member of the Inter-American Development Bank (IDB) 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 encouraging 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, please visit www.iic.int.

Contact: Carlos Roa/Rodrigo Navas

Telephone: (202) 623-3955

Email: carlosroa@iadb.org/rodrigon@iadb.org