IIC Approves A Regional Program To Provide Up To US$12 Million In Financing For The Agribusiness Sector In Latin America And The Caribbean
07/11/2005Washington, DC - On July 12, 2005, the Inter-American Investment Corporation (IIC) approved a financing program aimed at fostering private investment and job creation in small and medium-size agribusinesses in Latin America and the Caribbean. Financing will total up to US$12 million, to be provided 50% by the IIC and 50% by the Latin American Agribusiness Development Corporation S.A. (LAAD). This is the IIC’s second colending program with LAAD.
The program seeks to promote private sector investment and employment in rural areas of Latin American and Caribbean countries through the financing of small and medium-size companies. The IIC chose LAAD to manage the program based on the latter’s experience in agribusiness financing in the region. The eligible countries are Argentina, Bahamas, Barbados, Belize, Bolivia, Brazil, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, El Salvador, Guatemala, Guyana, Haiti, Honduras, Jamaica, Mexico, Nicaragua, Panama, Paraguay, Perú, Suriname, Trinidad and Tobago, Uruguay, and Venezuela.
Beneficiary companies will be able to use the funds for various purposes according to their needs, including expansion of their production capacity, refinancing, working capital, and purchase of assets. All projects must comply with IIC environmental and labor management guidelines. Ten to fifteen companies are expected to receive financing under the program, resulting in the creation of 500 to 700 jobs and between US$30 million and US$45 million annually in total foreign exchange generation.
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 borrowing member countries by stimulating the establishment, expansion, and modernization of private enterprises, particularly those that are small and medium in size.
Contact: Steven Reed/Javier Hernández
Telephone: (202) 623-3981