IIC Supports The Financial Sector In Chile
04/27/2004WASHINGTON, D.C. - On April 28, 2004, the Board of Directors of the Inter-American Investment Corporation (IIC) approved a loan of up to US$3 million to FactorLine S.A. The one-year loan is renewable for up to three one-year periods.
Factorline, formerly known as Bifactoring, has been active since 1993 in the purchase, at a discount, of invoices, bills of exchange and checks issued by small and medium-size enterprises based in Chile. The company is majority owned by the Said and Massú groups, also shareholders of the bank BBVA in Chile.
International factoring consists of discounting trade documents. Factoring is used chiefly by small and medium-size companies that usually do not have easy access to bank financing because they cannot provide security, lack audited financial statements, or do not have a track record in the financial system. This is the IIC's first project with a factoring company. This new financing system will be available to small and medium-size exporters starting in June of this year.
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/Ana María Orellana
Telephone: (202) 623-3981