In Nicaragua, IIC Signs A US$250,000 Loan For The Construction Sector
11/27/2007The operation will help bring new technology into Nicaragua, enabling the beneficiary company to increase productivity
Managua, Nicaragua – The Inter-American Investment Corporation (IIC) signed a US$250,000 loan agreement with Acabados Rústicos, S.A. in Nicaragua, under the Small Business Revolving Line (SBRL). Acabados Rústicos manufactures terra cotta roof, floor, and wall tiles.
The company will use the proceeds of the loan to expand its manufacturing facility and upgrade some of its intermediate manufacturing processes by purchasing state-of-the-art equipment. This will improve productivity and enable the company to increase its volume of exportable products throughout the year, even during the rainy season. The company also expects to increase its domestic sales to replace current imports.
The SBRL is a financial product approved in 2006 that enables the IIC to offer standardized small loans to eligible small enterprises under an expedited approval process. The SBRL is currently 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 Jacobo Argüello Chavarría, majority shareholder and company president, "This first operation with the IIC will make one of our biggest dreams come true. We will have consistent production levels year round, so we can continue to provide our discerning clients around the world with a world-class product made by hand in Nicaragua."
The loan agreement was signed in Managua, Nicaragua, where the IIC has a local presence. Signing for Acabados Rústicos, S.A. were Jacobo Argüello Chavarría and María de los Ángeles Ramos de la Cruz. Local counsel Roberto Argüello Villavicencio signed for 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. For more information on the IIC’s activities, please visit www.iic.int.
Contact: Johnny Jirón (in Nicaragua)
Telephone: + (505) 267-0831