Santa Cruz, Bolivia, February 26, 2016
—IFC, a member of the World Bank Group, will provide a $15 million loan to Banco Ganadero S.A., one of the leading banks in Bolivia, to support the bank’s efforts to boost access to finance for small and medium enterprises and help spur faster growth in a sector that plays a critical role in Bolivia’s economy.
The loan is the latest engagement by IFC in Bolivia, a country where the World Bank Group is seeking to promote broad-based and inclusive growth. Improving access to finance for SMEs plays a critical role in these efforts as micro, small, and medium enterprises make up the majority of businesses in Latin America and they are important drivers of growth and job creation.
In Bolivia, only around 30 percent of the potential financing demand for SMEs is being currently met despite by the banking sector. The loan to Banco Ganadero addresses this challenge as it will help the bank double its outstanding loans to SME’s in the next five years.
“Our relationship with IFC will be very important in our commitment to expand access to finance in Bolivia,” said Ronald Gutiérrez, Banco Ganadero’s general manager. “This new financing will help us increase our footprint and offer more financing alternatives for small and medium enterprises, which is a crucial segment of Bolivia’s economy,” Gutiérrez said
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“We are grateful for the confidence that IFC, an important multilateral lender, has placed on us which allows us to support this type of operations to boost the growth and development of our clients,” Gutierrez said.
IFC’s investment will allow Banco Ganadero to continue providing its clients with access to funding at longer maturities and more appropriate structures, thus helping them to enhance productivity and grow. This is IFC’s second transaction with Banco Ganadero. IFC and Banco Ganadero have been working together in Bolivia since 2009, when the bank joined IFC's Global Trade Finance Program. This program provides clients such as Banco Ganadero access to a global network of confirming banks, facilitates access to trade lines, and helps provide comprehensive solutions for small and medium enterprises.
“IFC’s support for Banco Ganadero is a new example of IFC’s strategic focus of supporting job creation in Bolivia by increasing access to financial services that benefit SMEs,” said Carlos Leiria Pinto, IFC’s head for the Andean region. “We are confident that Banco Ganadero will be a crucial player in Bolivia’s efforts to boost financial access for SMEs, which in turn will help drive economic growth and job creation,” he said.
IFC’s strategy for next years in Bolivia focuses on investments in the financial sector, agroindustry, and services. These investments seek to promote the development of SMEs, promote foreign trade and protect natural resources through the implementation of best global practices on environmental sustainability.
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 on the private sector in emerging markets. Working with more than 2,000 businesses worldwide, we use our capital, expertise, and influence, to create opportunity where it’s needed most. In FY15, our long-term investments in developing countries rose to nearly $18 billion, helping the private sector play an essential role in the global effort to end extreme poverty and boost shared prosperity. For more information, visit
www.ifc.org
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