Agreement Is Signed For IIC's First Agency Line
12/20/1999The investment will benefit agribusiness in the region WASHINGTON, D.C. — The Inter-American Investment Corporation (IIC)1 subscribed a $20 million agency line agreement with Latin American Agribusiness Development Corporation, S.A. (LAAD). Agency lines are a new type of operation whereby the IIC seeks to reach its target market through specialized financial institutions that are willing to share the risk of long-term lending to small and medium-size companies. LAAD will channel long-term funding to small and medium-size enterprises in the key agribusiness sector in the Bahamas, Barbados, Belize, Bolivia, Costa Rica, Dominican Republic, Ecuador, El Salvador, Guatemala, Guyana, Haiti, Honduras, Jamaica, Nicaragua, Panama, Paraguay, Suriname, Trinidad and Tobago, and Uruguay.
The signing ceremony took place at the IIC's headquarters in Washington, D.C. The document was signed by Mr. John C. Rahming, General Manager of the IIC; and Mr. Benjamín Fernández, President of LAAD.
The agency line is expected to reach some thirty companies, generate about nine hundred jobs and $15 million a year in foreign exchange, and contribute approximately $60 million each year to the region’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.
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