IIC Signs A US$100,000 Loan To Nicaraguan Agribusiness
02/25/2007Seventh IIC operation under the Small Business Revolving Line
Managua, Nicaragua– On February 23, 2007, the Inter-American Investment Corporation (IIC) signed a US$100,000 loan agreement with Nicaragua’s Desarrollo Agrícola, S.A. (DAISA) under the Small Business Revolving Line (SBRL). DAISA produces, stockpiles, and exports
The SBRL is a new financial product with a streamlined approval process that enables the IIC to offer small, standardized loans to eligible small companies. It is currently 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 expand the areas farmed by small producers that supply Desarrollo Agrícola, S.A., as well as for improving the handling of products as they enter the processing and packaging plant.
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 Desarrollo Agrícola, S.A. 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. The brothers Fernando Alvarado and Roberto Alvarado, who are shareholders, signed for Desarrollo Agrícola, S.A., stating, "With this IIC loan, we’ll be able to support the efforts of hundreds of small producers and ensure reception of a high-quality product for export." Mr. Roberto Villavicencio, IIC local counsel, signed on behalf of the IIC.
The Inter-American Investment Corporation is a multilateral financial institution that is part 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 stimulating 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: Johnny Jirón (in Nicaragua)
Telephone: + (505) 267-0831