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Asunción, Paraguay/ Washington D.C. August 22, 2013—
IFC, a member of the World Bank Group, will provide $15 million in local currency to Vision Banco S.A.E.C.A., to help expand access to finance for micro, small and medium entrepreneurs (MSMEs), a key contributor to economic growth and job creation in Paraguay.
IFC’s five year financing to Vision Banco will be sourced through the Master Swap Agreement signed between IFC and the Central Bank of Paraguay on June 2011 to facilitate local currency lending to key economic sectors in the country. This will be the second local currency loan granted by IFC in Paraguay under the agreement. Banco Vision is the fifth largest bank by loans in Paraguay and has become a leading microfinance institution in the country
“IFC’s support will strengthen our position as an essential source of long-term financing for MSME in Paraguay and an important player in the country’s financial sector,” said Luis Maldonado, President of Vision Banco. “Access to finance in appropriate conditions for MSMEs will contribute to create direct and indirect jobs and to reinforce the financial structure of these companies, with special focus on rural areas and on underserved sectors.”
The Master Swap Agreement facilitates the provision of Guarani loans to Paraguayan companies eliminating their exchange rate risk, and supporting the growth of the country’s private sector. It also enables IFC to offer long-term financing to companies through financial intermediaries and individuals that do not generate foreign currency revenues and cannot take on risks associated with borrowing in U.S. dollars.
“IFC’s support to Vision Banco is consistent with our strategy to address gaps in access to finance for productive economic sectors in Paraguay” said Ramiro García, IFC’s Relationship Manager for Financial Markets in Paraguay. “Through this partnership with Vision Banco, IFC will help provide entrepreneurs and small enterprises with growth opportunities.”
IFC’s strategy in Paraguay supports access to finance for micro, small, and medium enterprises, promotes regional expansion of local firms, fosters global trade, and protects natural resources through environmentally sustainable business practices. As of today, IFC has an investment portfolio of $212 million in 9 private sector projects in.Paraguay. For more information about IFC in Latin America and the Caribbean, visit
www.ifc.org/lac
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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 Vision Banco S.A.E.C.A.
Vision Banco was created in 1992 as a financial company with a main focus set on microfinance, and developed into a banking institution in 2008. The Bank was founded by eleven Paraguayan shareholders and, over time, incorporated institutional investors including Oikocredit, Microvest, Bamboo Finance, Corporación Andina de Fomento and Developing World Markets. The mission of Visión Banco: We are an inclusive bank, committed to contributing to economic development, job creation and prosperity to alleviate poverty by offering in the country’s regional markets sustainable solutions tailored to the aspirations of entrepreneurs, companies, organizations and communities. For more information visit:
http://www.visionbanco.com/
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