IIC Signs Third Loan In Bolivia Under Its Small Business Revolving Line
07/17/2008The IIC loan will strengthen Bolivia’s transportation sector
La Paz, Bolivia - On July 17, 2008, the Inter-American Investment Corporation (IIC) and El Porvenir Ltda. S.R.L. signed a US$400.000 loan agreement under the Small Business Revolving Line (SBRL) in Bolivia. El Porvenir is a Bolivian company with more than thirty years of experience in domestic and international overland shipping, especially of grain, vegetable oils, ore, and fuel. The company also provides freight-related services such as general logistics, warehousing, customs clearance, inventory control, and security. Since 1994 El Porvenir has been contributing to Bolivia’s development by distributing international food aid to target areas.
El Porvenir will use the loan proceeds to purchase new trailer and tanker trucks in order to increase its capacity to haul both liquid and dry cargo.
This operation arose from an agreement between the IIC and Fundación Bolivia Exporta (FBE) for FBE to act as the IIC’s agent in Bolivia to identify and evaluate small and medium-size enterprises that are eligible for direct financing under the SBRL. The agreement was made possible by funding that the IIC received from the Danish Fund.
The SBRL is a financial product that enables the IIC to offer standardized small loans to eligible small enterprises under an expedited approval process. It is currently offered in Bahamas, Barbados, Bolivia, Costa Rica, Dominican Republic, Guyana, Haiti, Honduras, Jamaica, Nicaragua, Paraguay, Suriname, Trinidad and Tobago, and Uruguay. The SBRL targets private companies operating in the agribusiness, manufacturing, wholesale, retail, service, and construction sectors, as well as any other sector that contributes to the local economy.
Signing for El Porvenir was General Manager Álvaro Ayllón, who said, "El Porvenir will take this loan and use it as a platform to launch our company into a period of expansion towards new horizons, providing quality services to more people. We welcome the IIC initiative for furthering SME development in Bolivia by providing financing tailored to the needs of companies like ours. We hope that similar institutions will join this initiative and offer Bolivian SMEs new financing alternatives."
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. In 2007, the IIC reached US$1.2 billion in assets and approved 62 transactions channeling US$470 million to SMEs in the region. The IIC’s mission is to promote the economic development of its regional member countries by encouraging 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: Hernando Lesme (in Paraguay)
Telephone: + (595 21) 616-2321