IIC Approves A Colending Program Of Up To US$10 Million With Crédit Uruguay Banco S.A.

11/07/2005

Washington, D.C. - On November 8, 2005, the Inter-American Investment Corporation (IIC) approved a colending program of up to US$10 million with Crédit Uruguay Banco S.A. The colending program will promote private sector investment and employment in Uruguay. The loan proceeds can be used to expand production capacity, finance working capital needs, purchase assets, or a combination thereof.

Crédit Uruguay, a strong local subsidiary of France’s Crédit Agricole, will assess, structure, close, supervise, and administer the loans disbursed under the program. Crédit Uruguay will also be the colender in each financing operation under the colending program. This operation is in line with the IIC’s commitment to support a financial intermediation process that promotes private sector development. The operation will enable the IIC to reach a larger number of companies at a lower cost, fulfilling its catalytic role by leveraging its own resources and benefiting SMEs. This operation is expected to benefit between ten and fifteen small and medium-size companies.

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 borrowing member countries by stimulating the establishment, expansion, and modernization of private enterprises, particularly those that are small and medium in size.

Contact: Steven Reed/Michael Apel

Telephone: (202) 623-3981

Email: stevenr@iadb.org