Banco de Guayaquil S.A. receives a subordinated loan of up to US$5 million from the IIC
07/19/2010The subordinated loan will help strengthen the bank’s capital and further the expansion of an innovative approach to bringing lower-income population segments into the formal banking sector
Washington, D.C. - On July 20, 2010, the Inter-American Investment Corporation (IIC) approved a subordinated loan of up to US$5 million to Banco de Guayaquil S.A. that will help strengthen the institution by enabling it to step up its financing activities in Ecuador.
One of these activities is the Banco del Barrio (neighborhood bank) project, an innovative banking services concept that operates like a transactional channel installed in popular businesses (pharmacies and small shops, for example) for making withdrawals, deposits, and transfers. This is a way to reach lower-income segments of the population in marginal and rural areas of Ecuador where traditional banking services are not available.
According to Rita Bettiol, IIC Investment Officer in charge of the operation, "The IIC will be providing greater value added to micro and small enterprises in Ecuador by strengthening Banco de Guayaquil’s capital and supporting the growth of the Banco del Barrio initiative. This will put financing within the reach of micro, small, and medium-size enterprises and help the Banco del Barrio project grow and begin lending to the small establishments that make up the neighborhood banking system. Subsequently, lending will be extended to the users of this service. This has the advantage of stimulating the economy at the municipal level, saving users time and money by making banking services available near to where they live. In the end, this will strengthen Ecuador’s formal banking system."
About Banco de Guayaquil
Banco de Guayaquil, which has been operating for 85 years, is the first all-purpose bank in Ecuador and one of the country’s largest banks. It offers a full range of banking and financial services under a single roof. As a universal bank, it focuses on providing financial services to individuals, small and medium-size enterprises, and corporations through its wide network of offices and points of service throughout Ecuador. For more information on Banco de Guayaquil, visit www.bancoguayaquil.com.
About the IIC
The IIC is a multilateral financial institution that is a member of the Inter-American Development Bank (IDB) Group. 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. It does so by providing financing (in the form of equity investments, loans, guarantees, and other instruments) and advisory services to private enterprises in Latin America and the Caribbean. In 2009, the IIC reached US$1.4 billion in assets and approved 40 operations channeling US$299.8 million to SMEs in the region. For more information on the IIC’s activities, please visit www.iic.int.
Contact: Rita Bettiol
Telephone: (202) 623-1263