IIC And Bac San José In Costa Rica Reaffirm Their Commitment


They sign a US$25 million loan that will benefit SMEs and the housing sector in Costa Rica

San José, Costa Rica - On April 22, 2010, the Inter-American Investment Corporation (IIC) and BAC San José, one of Costa Rica's oldest private banks, held a signing ceremony for a US$25 million loan agreement. BAC San José is part of the BAC Credomatic network and it is a subsidiary of BAC International Bank, a bank established in Panama with subsidiaries throughout Central America.

The purpose of the operation is to provide medium-term project financing for small and medium-size enterprises and fixed-rate funding for residential housing.

BAC San José is Costa Rica's main private bank. The IIC has supported it since 2004 through medium- and long-term financing programs in local currency and in United States dollars, which it has used to onlend to companies and SMEs and for leasing operations and housing projects.

According to Gerardo Corrales, BAC San José's CEO, "We appreciate the IIC's support, especially on its 25th anniversary. It will help us continue to promote SME financing and financial inclusion, and support the country's economic recovery."

"The IIC and BAC San José enjoy a long and successful relationship working together to offer SMEs financing options, which are often unavailable. This loan is another indication of the commitment both institutions have to SMEs and to ensuring that these companies have the financing required to grow and prosper in increasingly competitive markets," stated Jacques Rogozinski, IIC General Manager.

Ernesto Castegnaro, President, signed on behalf of BAC San José and Jacques Rogozinski, General Manager, signed for the IIC. Also present at the signing ceremony were IIC Deputy General Manager Steven Reed; IIC Technical Assistance and Strategic Partnerships Division Chief Jorge Roldán; BAC San José CEO Gerardo Corrales; and BAC San José Financial Manager Hazel Valverde.

BAC San José closed 2009 with US$1.92 billion in assets and a loan portfolio of US$1.35 billion. It has a long-term international risk rating of BB issued by Standard and Poor's, equal to Costa Rica's sovereign risk rating. It is a subsidiary of BAC International Bank Inc., which has a risk rating of BBB from the same agency. For more information on BAC's activities, please visit www.bac.net.

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: Steven Reed

Telephone: (202) 623-3981

Email: stevenr@iadb.org