IIC Signs US$100,000 Loan In Agribusiness Sector In Nicaragua
12/14/2006Fifth IIC operation under the Small Business Revolving Line
Managua, Nicaragua– On December 15, 2006, the Inter-American Investment Corporation (IIC) signed a loan agreement for US$100,000 with Cafetalera Castellón, S.A. in Nicaragua under the Small Business Revolving Line (SBRL), a new financial product with a streamlined approval process that enables the IIC to offer small, standardized loans to eligible small companies.
The SBRL is offered in Costa Rica, Honduras, Nicaragua, Paraguay, and Uruguay. It targets private companies operating in the agribusiness, manufacturing, wholesale, retail, service, and construction sectors, as well as other sectors that contribute to the local economy.
The loan proceeds will be used to supplement the client's investment in remodeling a specialty coffee stand in the Managua International Airport. Cafetalera Castellón, S.A. is a small Nicaraguan business that has been successfully exporting specialty coffees to the United States, Europe, and Japan for over three years.
It is still difficult for small and medium-size companies in Latin America and the Caribbean to obtain financing on reasonable terms. Operations like the loan to Cafetalera Castellón are part of the IIC's ongoing efforts to streamline procedures, improve efficiency, and offer smaller loans.
The loan agreement was signed in Managua, Nicaragua, where the IIC has a local presence. Mr. John Castellón López signed for Cafetalera Castellón, S.A., stating, "Thanks to the IIC financing we will be able to deliver our quality products to a greater number of consumers, which will benefit our company and the hundreds of small, hard-working coffee farmers with whom we work." Mr. Roberto Villavicencio, IIC local council, signed on behalf of the IIC.
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.
Contact: Johnny Jirón (in Nicaragua)
Telephone: + (505) 267-0831