Usa Banks List

IDB approves loan facilities and guarantees $ 150 million

Empresa Exterior / Monday, August 09, 2010

The entity that aid granted to small financial institutions to increase loans of high social impact, especially for SMEs. Will be allocated to institutions in Latin America and the Caribbean to finance long term projects.

The Inter-American Development Bank will start its project to support financial institutions in Latin America and the Caribbean that is to grant a loan and guarantee facility of up to $ 150 million to boost long-term financing for small projects "high social impact. "

Assistance under the Subordinated Debt Facility for Latin America and the Caribbean, approved by the executive board of the IDB, also mobilize additional resources from commercial banks and other institutions "in order to boost financing to small and medium enterprises, micro-credit and credit for housing, "says the bank.

"This support to the private sector will help to stimulate economic recovery in the countries of the region that were affected by the ravages of the global financial crisis unleashed in 2008. The Bank is responding to the need for financial institutions to strengthen their capital structure to support growth, primarily in areas of high social impact are crucial for the economic development of the region, "said Daniela Carrera, head of the Financial Markets Division, IDB.

The Bank will encourage financial institutions in Latin America and the Caribbean through a facility for loans and guarantees for up to $ 150 million. It is aimed at promoting long-term projects of small and medium enterprises.

During the crisis, says the state, regional private financial institutions reduced their lending portfolios, including SMEs and housing, the deterioration of the discharge of their responsibilities and liquidity constraints. "Now that the emergency is happening, the new facility will allow them to regain their levels of funding," according to IDB.

In this context, the facility will include the structuring of subordinated debt instruments that could take the form of subordinated loans, guarantees to banks and investors in the region to fund such loans, or partial credit guarantees in support of the issuance of subordinated bonds.

These instruments could be supplemented, depending on market conditions, joint loans, co-guarantees and syndicated loans extended by commercial banks or other financial institutions.

Subordinated debt instruments will be financed mainly by the IDB, as equity instruments that could sue these financial institutions shall be for the International Finance Corporation, the arm of World Bank support to the private sector.

More news

Usa Banks List

© 2018 All rights reserved