IIC's Half-Year Financial And Operating Results Presented To Its Board Of Directors
08/08/2006Washington, D.C. - On August 8, 2006, the Inter-American Investment Corporation (IIC) presented its half-year financial and operating results to the Board of Executive Directors of the IIC. As of June 30, net active approvals stand at a record US$859.2 million.
During the first semester, the IIC approved twenty-six operations for US$228 million, including its first local-currency operation in Mexico. This operation, for an equivalent of approximately US$20 million, is with Compartamos S.A., Mexico’s largest microfinance institution. The IIC disbursed US$166.3 million in the first half of the year, increasing development assets by 40% over the past twelve months and bringing the total to more than US$605 million. Total assets increased nearly 43% since June 30, 2005, ending the first semester 2006 at US$799 million. Net income as of June 30 was US$23.5 million—a 411% increase compared with the same period in 2005. IIC Management expects continued strong performance in the second half of 2006 and anticipates closing the year with approximately US$1 billion in net active approvals.
IIC’s performance is in part attributable to the region’s strong macroeconomic performance over the past two years. Economies are growing more quickly, and there is a greater demand for credit. It is also the result of a stepped-up effort by the IIC to process loans to financial institutions more quickly and to collaboration with the Multilateral Investment Fund (MIF) to support the development of financial institutions’ capabilities to reach small and medium-size companies and microenterprises. Over the past eighteen months, the IIC approved more than US$455 million in loans to twenty-nine financial institutions. In addition, corporate lending activity increased significantly in the first semester as the IIC also has expanded its local presence in the region and now has eight regional offices; they are in Argentina, Chile, Colombia, Costa Rica, Nicaragua, Paraguay, Trinidad and Tobago, and Uruguay. Expanded regional presence is facilitating IIC’s ability to provide better and more responsive service to small and medium-size companies.
These financial and operating results attest to the IIC’s ongoing commitment to further economic progress in Latin America and the Caribbean, especially to the benefit of those who live and work at the base of the economic and social pyramid.
"The key to addressing poverty and economic development begins with preserving existing jobs and increasing employment opportunities for those without jobs. The IIC works with private companies and financial institutions to expand and modernize businesses, to improve competitiveness, and to introduce new and better products. These improvements allow those businesses benefiting from IIC financing to be financially sustainable and to support the workers, suppliers, and communities that depend on them" explained Jacques Rogozinski, the IIC’s General Manager.
The Inter-American Investment Corporation, a multilateral financial institution that is part of the IDB Group, 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, visit its Web site at www.iic.int.
Contact: Jacques Rogozinski
Telephone: (202) 623-3901