Small Loans For Small Companies: Quimvetsa And IIC Sign Loan Agreement In Nicaragua

06/02/2008

The IIC loan will be used to increase productivity and launch new product lines

Managua, Nicaragua - On June 2, 2008, the Inter-American Investment Corporation (IIC), a member of the IDB Group, signed a US$190,000 loan agreement with Químicas Veterinarias S.A. (Quimvetsa) under the Small Business Revolving Line (SBRL). The pharmaceutical company, which manufactures veterinary medicines that are widely accepted in the regional market, has successfully operated in Managua since 1999.

The loan proceeds will be used to purchase equipment and raw materials, and to remodel and refurbish a distribution, wholesale, and retail outlet in Managua.

The SBRL is a financial product that enables the IIC to offer standardized small loans to eligible small enterprises under an expedited approval process. It is currently offered in Bahamas, Barbados, Bolivia, Costa Rica, Dominican Republic, Guyana, Haiti, Honduras, Jamaica, Nicaragua, Paraguay, Suriname, Trinidad and Tobago, and Uruguay. The SBRL 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.

Signing for Quimvetsa were Ricardo Hoigjelle, general manager, and Norma Nilda Valle, majority shareholder. Mr. Hoigjelle stated: "We are a small company, but with the support of an institution such as the IIC, which considered us and gave us a vote of confidence, we feel large. Thanks to the support of the IIC, companies such as ours, with no financial experience, can reach goals that may seem unattainable. This financing will enable our company to increase profits and in turn contribute to Nicaragua’s economic development."

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 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 www.iic.int.



Contact: Johnny Jirón (in Nicaragua)

Telephone: + (505) 267-0831

Email: johnnyj@iadb.org