Productive Sectors Of The Argentine Economy To Receive IIC Support

08/18/1999

Small and medium-size Argentine companies will have access to medium-term financing WASHINGTON, D.C. - On August 13, 1999, the Board of Directors of the Inter-American Investment Corporation (IIC)1 approved a $30 million loan to Banco Río de la Plata, S.A. The funding consists of a $10 million A loan and a $20 million B loan under the IIC’s cofinancing program. The loan proceeds will be used to provide small and medium-size Argentine companies with medium-term financing.

The IIC will provide financing in the form of subloans to the industrial, agribusiness, and service sectors for expansion projects, purchases of machinery and equipment, and working capital. The funds from the IIC will enable Banco Río de la Plata, S.A. to provide medium-term financing to at least sixty small and medium-size companies in Argentina whose access to such financing is limited.

The funding will also help generate foreign exchange in such key sectors as manufacturing, agribusiness, and services. The loan is also expected to create 1,800 jobs, generate $30 million in export income each year, and contribute more than $120 million per year to Argentina’s GDP.

1 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. The IIC has thirty-six member countries: twenty-five in Latin America and the Caribbean and eight in Europe, plus the United States, Japan, and Israel. For further information on IIC's activities please visit our web site at iic.iadb.org or contact Mr. Jorge Roldán at 202-623-3948.

Contact: Steven Reed

Telephone: (202) 623-3981

Email: stevenr@iadb.org