El Salvador’s design industry gets a boost from the IIC through FINPYME Credit
San Salvador, El Salvador – On July 15, 2001, the Inter-American Investment Corporation (IIC) and Empresa Mobilia, S.A. de C.V. (Mobilia) signed a loan agreement for up to US$350,000. The proceeds will be used for working capital as this manufacturing company grows, diversifies its product line, and introduces new furniture design trends.
When Mobilia started up in 1971 its only product was beds, but success on the local market led the company to expand its export frontiers to include Honduras, Nicaragua, Guatemala, and Costa Rica and diversify the line of furniture it manufactures. Mobilia employs 267 people directly.
"Thanks to the IIC’s support through this operation we will be able to step up production year round, meet the demand for our Mobilia products from our distributors in Central America, and satisfy our customers’ exacting taste. This financing will boost Salvadoran manufacturing and help address the problem of tight credit that has affected the sector for several years," said Mobilia’s president, Reynaldo Vásquez.
According to Luisa Mayorga, IIC Technical Associate in charge of the operation, "IIC support for the manufacturing sector through this operation will have a positive impact on private sector development and on the Salvadoran economy by generating more jobs and export revenues."
Reynaldo Vásquez signed for Mobilia; David Gruter, attorney at the law firm Arias & Muñoz, signed for the IIC.
FINPYME Credit is an IIC product for granting small loans to provide SMEs with financing ranging between US$100,000 and US$600,000. It is geared towards supporting small companies that want to increase sales and are in need of financing for working capital and for investing in fixed assets. FINPYME Credit targets private companies operating in the agribusiness, manufacturing, wholesale, retail, service, and construction sectors, as well as any other sector that contributes to the local economy. It is offered in Bolivia, Costa Rica, El Salvador, Guatemala, Haiti, Honduras, Jamaica, Nicaragua, Paraguay, and Uruguay.
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 2010, the IIC reached US$1.4 billion in assets and approved forty-nine operations channeling US$374.8 million to SMEs in the region. For more information on the IIC’s activities, please visit www.iic.int.
Contact: Luisa Mayorga
Telephone: + (505) 2264-9140