IIC Approves A Partial Guarantee Program For Banco Rabobank International Brasil S.A.
11/28/2005Washington, D.C.- On November 29, 2005, the Inter-American Investment Corporation (IIC) approved a partial credit guarantee program of up to US$15 million for Banco Rabobank International Brasil S.A. The partial credit guarantee program will provide partial guarantees for loans to farmers originated and managed by Rabobank Brasil.
The bank is part of the Rabobank Group, which is engaged primarily in residential mortgages and the agricultural sector and has a substantial small and medium-size enterprise market. The rural loans as designed by Rabobank Brasil represent a new form of financing that gives farmers access to reliable crop and storage financing. Such financing is not readily available in the market. In Brazil there are no local or foreign banks offering financing to cover even the largest farmers' working capital requirements for purchasing agricultural inputs. The program provides an innovative way to increase the access of private companies to formal credit. It is expected that in the future the IIC will extend this product to other financial institutions in Brazil that provide financing to farmers.
The Inter-American Investment Corporation is a multilateral financial institution that is part of the Inter-American Development Bank 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, visit its Web site at www.iic.int.
Contact: Steven Reed/Victor Hugo Moscoso
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