IIC Approves Innovative Guarantee Project For Citibank Del Perú, S.A.
05/20/2008The project will benefit small and medium-size suppliers, who will have improved access to sources of funding
Washington, D.C. - On May 20, 2008, the Inter-American Investment Corporation (IIC) approved a facility for granting Citibank del Perú, S.A. up to US$20 million in partial credit guarantees. The guarantees will enable Citibank del Perú to provide financing for a major food distribution company that will in turn pass the benefit on to its small and medium-size suppliers to help them decrease their financing costs and provide them with resources they can invest in improving product quality and cutting delivery times.
The IIC’s facility for Citibank del Perú will enable this leading financial institution to broaden a program that already exists for a select group of clients, helping them strengthen their supply chains by providing their suppliers with financing for working capital. The guarantee from the IIC will thus enable these suppliers—which are mostly small and medium-size enterprises—to obtain advance liquidity at preferential rates.
Citibank del Perú launched this working capital financing program almost eight years ago. The IIC guarantee will make it possible to broaden the scope of the program, especially to make it easier for small and medium-size suppliers to participate. Such suppliers have been unable to do so because the credit lines that can be granted under the program have reached their limit.
The Inter-American Investment Corporation is a multilateral financial institution that is a member of the Inter-American Development Bank (IDB) 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 stimulating 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: Olga Lucía De Narváez/Jorge Ciurlizza
Telephone: + (571) 325-7058