IIC Signs Loan Of Up To US$6 Million With Compañía Ecuatoriana Del Caucho S.A.
12/06/2007Washington, D.C. - On December 7, 2007, the Inter-American Investment Corporation (IIC) and Compañía Ecuatoriana del Caucho S.A. (ERCO) signed an agreement for a loan of up to US$6 million. ERCO will use the loan proceeds for working capital and to purchase machinery and equipment.
ERCO produces and sells Continental and General Tire brand tires for automobiles, light trucks, and trucks. It has a 43% share of the market in Ecuador and exports 35% of its production, chiefly to nations in the Andean region. The financing from the IIC will increase ERCO’s operating efficiency and help make its production line more flexible. The loan will have significant developmental impact by increasing the production of domestic tires to compete with imports. ERCO is the only tire manufacturer in Ecuador, where it has been operating since the 1960s. The company is a significant source of jobs and foreign exchange.
The loan agreement was signed at IIC headquarters in Washington, D.C. by Rita Padilla, ERCO Vice President for Finance, and Steven Reed, IIC Deputy General Manager.
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: John Beckham
Telephone: (202) 623-3984