IIC Approves A US$3 Million Loan To Banco Interamericano De Finanzas S.A. (BIF) In Peru


WASHINGTON, D.C.- On March 17, 2004, the Board of Directors of the Inter-American Investment Corporation (IIC) approved a loan of up to US$3 million for Banco Interamericano de Finanzas S.A.(BIF) aimed at providing medium- and long-term funding to small and medium-size Peruvian enterprises seeking to upgrade or expand their facilities. Eligible companies in the export, transportation, communications, and service sectors will receive subloans of up to US$500,000, with an estimated average of US$300,000. Between six and ten small and medium-size companies are expected to benefit from this transaction.

With this transaction the IIC will promote the channeling of medium-term funding to small and medium-size enterprises with difficulties in finding adequate financing for their operations. Approximately 75% of BIF's portfolio is concentrated in small and medium-size companies. BIF's access to a credit facility from the Corporation will also enable small and medium-size companies in Peru to adopt updated labor and environmental management practices.

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. For more information on the IIC's activities, visit its Web site at www.iic.int.

Contact: Steven Reed/Rita Bettiol

Telephone: (202) 623-3981

Email: stevenr@iadb.org