IIC Support For Mexican Agriculture
08/01/2005Washington, DC- On August 2, 2005, the Inter-American Investment Corporation (IIC) approved a loan of up to US$10 million to Almacenadora Mercader, S. A. de C.V. (ALMER), a leading grain warehouser in Mexico. The operation will enable ALMER to increase its purchases of white corn from small grain growers for use in the production of tortillas and corn flour. Wheat and sorghum will also be purchased under the program.
ALMER will use the funds from the IIC to purchase the grain produced by small growers (with a repurchase option) or store it for future sale. This will benefit small growers by giving them access to competitive sources of credit, modern distribution systems, and hedging instruments. The operation will also enable the IIC to increase its support for a successful initiative launched in 2000, which has made a total of US$88 million in credit available to more than 5,900 Mexican farmers through a financing tool tailored to their needs. The operation also means continued support for a supply chain whereby thousands of growers of white corn provide the raw material for producing tortillas and corn flour, which are staple foods in Mexico.
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/Sotero Arizu
Telephone: (202) 623-3981