IIC Signs A US$125,000 Loan To A Wood Processor In Nicaragua
01/16/2007Sixth IIC operation under the Small Business Revolving Line
Managua, Nicaragua–On January 17, 2007, the Inter-American Investment Corporation (IIC) signed a US$125,000 loan agreement with Nicaragua’s Procesadora de Madera, S.A. under the Small Business Revolving Line (SBRL). Procesadora de Madera produces doors, windows, furniture, moldings, and other sawn-lumber products.
The SBRL is a new financial product with a streamlined approval process that enables the IIC to offer small, standardized loans to eligible small companies. It is currently offered in Costa Rica, Honduras, Nicaragua, Paraguay, and Uruguay. It targets private companies operating in the agribusiness, manufacturing, wholesale, retail, service, and construction sectors, as well as other sectors that contribute to the local economy.
The loan proceeds will be used to stockpile wood and purchase a 60 kilowatt (75 kVA) diesel powered generator.
It is still difficult for small and medium-size companies in Latin America and the Caribbean to obtain financing on reasonable terms. Operations like the loan to Procesadora de Madera are part of the IIC's ongoing efforts to streamline procedures, improve efficiency, and offer smaller loans.
The loan agreement was signed in Managua, Nicaragua, where the IIC has a local presence. Company shareholders Carmen Gutiérrez Palacios, Guiselle de los Ángeles Araica, and José Benito Méndez Sandoval signed for Procesadora de Madera, S.A., stating, "We have had to turn down some orders due to our working capital limitations. The financial support from the IIC opens up an extraordinary opportunity to increase our market share." Mr. Roberto Villavicencio, IIC local counsel, signed on behalf of the IIC.
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 encouraging the establishment, expansion, and modernization of private enterprises, particularly those that are small and medium in size.
Contact: Johnny Jirón (in Nicaragua)
Telephone: + (505) 267-0831