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Guatemala City, Guatemala, December 16, 2013
—IFC, a member of the World Bank Group, is helping Guatemala’s Banco G&T Continental strengthen its risk management practices to expand its network in rural areas and provide better financial services for small and mid-sized local businesses (SMEs).
In Guatemala, risk management practices need to be strengthened to ensure the long-term growth of financial institutions. Currently, a lack of credit constrains the ability of SMEs to grow and create jobs. IFC will provide advisory support to Banco G&T Continental over an 18-month period to help the bank strengthen its internal structures and procedures to identify and manage risks, in line with international best practices. This advisory engagement is intended to support the bank’s sustainable growth in the region.
“Our collaboration with IFC will help support Banco G&T Continental’s future expansion and financial sustainability by harmonizing our risk management policies to increase efficiency,” said Flavio Montenegro, Banco G&T’s CEO. “Banco G&T Continental will work with IFC to develop a more client-focused, performance-guided approach that serves the needs of our population.”
Banco G&T Continental is a locally owned bank and the largest subsidiary of Grupo G&T Continental. In 2008, IFC provided the first of its total $78.4 million equity investment in Banco G&T, which is IFC’s largest financial institution equity client in Central America.
"IFC is committed to supporting a more inclusive financial marketplace in Central America,” said Ghada Teima, IFC Access to Finance Manager for Latin America and the Caribbean. “Our aim is to help financial institutions become more resilient to economic downturns, grow sustainably and increase their lending to SMEs, which are key drivers of economic growth and job creation.”
Since Guatemala became a member of IFC in 1956, IFC has invested US$1.4 billion in the country’s private sector, including US$355 million mobilized from other financial institutions. IFC also implements advisory programs to improve the business climate, build the skills of local entrepreneurs, and promote access to finance and markets for small businesses.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. Working with private enterprises in more than 100 countries, we use our capital, expertise, and influence to help eliminate extreme poverty and promote shared prosperity. In FY13, our investments climbed to an all-time high of nearly $25 billion, leveraging the power of the private sector to create jobs and tackle the world’s most pressing development challenges. For more information, visit
www.ifc.org
About Banco G&T Continental
G&T Continental is a financial group with over US$7.280 billion in assets, over 1.8 million customers and users, 5,250 service points throughout Guatemala and gives jobs to more than 6,000 collaborators. It is present in the markets of El Salvador, Costa Rica and Panama. This year, the risk rating of Banco G&T Continental was confirmed by the most important international rating agencies: Standard and Poor’s and Fitch. For more information, visit
www.gytcontinental.com.gt
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