IIC Establishes A Local-Currency Financing Program For SMEs In Argentina With The Participation Of Garantizar S.G.R. And Banco De La Nación Argentina S.A.
09/06/2007Buenos Aires, Argentina - On September 7, 2007, the Inter-American Investment Corporation (IIC) established a ARG$30 million Program to Finance Small and Medium-Size Enterprises (SMEs) in Argentina, with the participation of Garantizar S.G.R. (Garantizar) and Banco de la Nación Argentina S.A. (Banco Nación). The IIC also invested in the capital stock of Garantizar and contributed to its risk fund. Garantizar is a mutual guarantee company (sociedad de garantía recíproca) that provides loan guarantees to its participating shareholders, principally small and medium-size private enterprises.
The documents signed were the Agency and Escrow Agreement, the Share Subscription Agreement, the Contribution to the General Risk Fund Agreement, and the Credit Line Agreement.
The agreements were signed at the offices of Banco Nación. Mr. Norberto Schor, Chairman, signed for Garantizar; Ms. Gabriela Ciganotto, President, signed for Banco Nación, and Mr. Diego Noseda, Executive Senior Attorney, signed for the IIC.
This Program, the IIC’s first local-currency transaction in Argentina, will enable SMEs to access financing in local currency at interest rates and terms that would otherwise be unavailable to them. Resources under the Program will be used to finance SME working capital, fixed asset purchases, investment projects, and general operating needs.
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 member countries by encouraging 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, please visit www.iic.int.
Contact: Diego Noseda/Sylvia Szankay
Telephone: + (54 11) 4320-1800