IIC Supports The Financial Sector In Costa Rica

09/22/2004

Washington, DC – On September 22, 2004, the Inter-American Investment Corporation (IIC) approved a US$10 million loan to Banco BAC San José, S.A., in Costa Rica, to provide short-, medium-, and long-term financing mainly to small and medium-size enterprises in Costa Rica.

This loan will allow Banco BAC to grant subloans to small and medium–size enterprises with terms ranging from three to five years. Between twenty-five and forty small and medium-size enterprises are expected to benefit from the transaction. The credit line approved also contemplates funding financial and/or operating lease transactions through Bac San José Leasing, S.A. Small and medium-size enterprises in Costa Rica have limited access to medium-term financing and, particularly, to long-term financing. Therefore, this financial instrument will be particularly useful as these companies will not require capital to purchase the fixed assets they need to increase their production capacity.

The Inter-American Investment Corporation is a multilateral financial institution that is part of the Inter-American Development Bank 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 borrowing member countries by stimulating the establishment, expansion, and modernization of private enterprises, particularly those that are small and medium in size.

Contact: Steven Reed/Gustavo Romero

Telephone: (202) 623-3981

Email: stevenr@iadb.org