IIC Approves Loan Of Up To US$42 Million To Banco Bilbao Vizcaya Argentaria In Paraguay
04/28/2008An A Loan of up to US$12 million to be funded by the IIC and a B Loan of up to US$30 million to be funded by participating financial institutions
Asunción, Paraguay - On April 29, 2008, the Inter-American Investment Corporation (IIC) approved a loan of up to US$42 million to Banco Bilbao Vizcaya Argentaria Paraguay S.A. (BBVA Paraguay), a leading bank that focuses on the primary agricultural and livestock sectors and has been operating in the small and medium-size enterprise (SME) market since 2006.
The proceeds from this operation will enable BBVA Paraguay to continue increasing its presence in the SME sector in Paraguay, with an expected 40% increase in its SME loan portfolio. The financing provided by the IIC is expected to directly benefit at least 210 SMEs in Paraguay, where there is high demand for long-term loans.
According to Carlos Roa, IIC Financial Institutions and Structured Finance Coordinator, "These SMEs need financing alternatives to properly fund their operations and help them to increase their production capacity and their ability to compete internationally. Long-term financing is limited in Paraguay. This is BBVA Paraguay's first operation with a multilateral institution. The operation's success is expected to attract other institutions to work with this and other banks in Paraguay."
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.
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