Productive Sectors Of The Peruvian Economy Will Benefit From IIC's Support

06/27/1999

Small and medium-size enterprises in Peru will be able to reach long-term financing WASHINGTON, D.C. - On May 20, 1999, the Board of Directors of the Inter-American Investment Corporation (IIC) approved a $30 million loan to Banco Internacional del Perú - Interbank. The funding consists of an A loan of $10 million and a B loan of $20 million under the IIC's cofinancing program. The funding will provide small and medium-size Peruvian companies with medium and long-term debt and leasing financing.

The IIC will support the Peruvian private sector through promoting the development of small and medium-size companies by providing them with medium to long-term financing through subloans and/or financial leasing. The IIC funding will allow these companies to access funds to execute much-needed medium and long-term projects, which will benefit the Peruvian economy. IIC funding will also allow Interbank to diversify its lending sources and access longer-term funds, thus helping to support the local banking system.

In addition, the funding will contribute to foreign exchange generation in key sectors such as manufacturing, fishing, mining, construction, chemicals, energy, tourism, and agribusiness. The credit facility is also expected to create 1,800 jobs, generate $30 million in annual export earnings, and contribute more than $120 million annually to the country's GDP.

Contact: Steven Reed

Telephone: (202) 623-3981

Email: stevenr@iadb.org