Inter-American Investment Corporation Approves Its First Loan For A Local Bank In Guyana
03/24/2008With this transaction, the IIC promotes financing for small and medium-size enterprises in the Caribbean
Washington, D.C.- On March 25, the Inter-American Investment Corporation (IIC) approved a US$2 million loan to Demerara Bank Limited, the only 100% Guyanese-owned bank. With this loan, the IIC will provide Demerara Bank with its first long-term foreign-currency loan from a multilateral organization. This transaction is expected to have a significant demonstration effect and help the bank start to diversify its sources of funding. It will also be the IIC’s first loan to a financial intermediary in Guyana.
Demerara Bank will use the proceeds of the loan to launch a program that will provide Guyanese companies with medium- and long-term financing in U.S. dollars. Rodrigo Navas, IIC Investment Officer, stated: "In the current world and regional economic environment, improving access to suitable credit for SMEs is essential. This is especially important in Guyana, where long-term foreign-currency financing for SMEs is not available. For financial intermediation to benefit private sector development, financial institutions first need access to longer-term sources of funding."
Demarara Bank expects that at least ten SMEs will benefit from this operation over the life of the loan.
The Inter-American Investment Corporation is a multilateral financial institution that is a member of the Inter-merican 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. For more information on the IIC’s activities, please visit www.iic.int.
Contact: Rodrigo Navas
Telephone: (202) 623-3926