The project consists of a loan to Banco Continental. The purpose of this project is to provide financing to small and medium-sized enterprises (SMEs) in Paraguay by granting medium- and long-term loans for their modernization and/or expansion, according to eligibility criteria to be set by the IIC.
Founded in 1980, Banco Continental is the second leading full-service bank in Paraguay’s financial system in terms of total assets. Focused primarily on SMEs and corporate lending, its traditional target market has been companies in the agricultural sector. Banco Continental serves more than 100,000 clients through its 53 branch offices, 125 automatic teller machines, and website for online transactions.
Environmental and Labor Issues:
This is a category FI-2 project according to the IIC’s Environmental and Social Sustainability Policy because the subprojects in the financial intermediary’s current or future portfolio are considered medium risk. To enable the Borrower to better understand the IIC’s requirements, Banco Continental shall be required to attend the IIC environmental training workshop for financial intermediaries. Each subproject will be subject to an environmental review and must comply with domestic environmental and labor laws, regulations, and standards, as well as IIC environmental guidelines. Banco Continental must also submit annual environmental reports to the IIC indicating the progress made and problems encountered in the implementation of these practices.