IIC's Second Operation Under Its Small Business Revolving Line Is Signed In Paraguay For US$200,000
07/30/2006Asunción, Paraguay--On July 31, 2006, the Inter-American Investment Corporation (IIC) signed its second loan 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 US$200,000 was granted to Wilhelm S.A.C.I.A.G. for financing fixed investments and working capital in the agricultural sector.
It is difficult for small and medium-size companies in Latin America and the Caribbean to obtain financing on reasonable terms. Operations like the loan to Wilhelm are part of the IIC's on-going efforts to streamline procedures, improve efficiency, and offer smaller loans. The SBRL is being 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 any other sector that contributes to the local economy.
According to IIC investment officer Hernando Lesme, "thanks to the SBRL program we can meet demand for medium- and long-term financing in a specific sector in a way that is much more in keeping with market needs and the size of Paraguayan companies. Wilhelm is an example of the financing that companies need for investments that will make them more efficient and profitable."
Carlos Costas, president of Wilhelm, said "with this long-term loan from the IIC we will be able to continue investing in the agricultural sector because the funding is appropriate for the nature of our product, essential petitgrain oil. We will also be able to make all of our production lines more efficient."
The loan agreement was signed at the IDB country office in Asunción, Paraguay, where the IIC has a local presence. Signing for Wilhelm S.A.C.I.A.G. was Mr. Carlos Costas, the company's president. Hernando Lesme, investment officer, signed for the IIC.
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 member countries by stimulating the establishment, expansion, and modernization of private enterprises, particularly those that are small and medium in size.
Contact: Hernando Lesme (in Paraguay)
Telephone: + (595 21) 616-2321