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Asunción, Paraguay, February 2, 2016
—IFC, a member of the World Bank Group, is providing a seven-year $90 million loan to Banco Itau Paraguay S.A., a leading bank in Paraguay, to increase access to finance for small and medium enterprises, helping to support the development of a sector that plays a critical role in the Paraguayan economy.
IFC’s financing consists of a $60 million loan on IFC’s own account and a $30
million
loan
through the IFC Managed Co-Lending Portfolio Program,
a syndications platform that offers institutional investors an opportunity to participate in IFC’s future senior loan portfolio.
Small and medium enterprises (SMEs) have been key in the continued poverty reduction trend observed in the country during the last decade. Together with micro enterprises, they account for more than 63% of the total employed population in Paraguay. One of the most relevant challenges SMEs still face for their sustainable growth, however, is the lack of access to finance, which affects their competitiveness. According to a survey of the National Department of Statistics of Paraguay, 54% of medium-sized companies do not have access to finance.
IFC’s investment will allow Banco Itau Paraguay 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 third investment in Banco Itau Paraguay. IFC and Banco Itau Paraguay have been working together in Paraguay since 2007, when the bank joined IFC's Global Trade Finance Program.
“The long-term relationship with IFC has been very important to support our continued commitment in expanding access to finance in Paraguay,” said Viviana Varas, CEO of Banco Itau Paraguay. “This new financing will enable us to increase our footprint and financing alternatives for small and medium enterprises which is a crucial segment of Paraguay’s economy.”
“We look forward to continue to support Banco Itau Paraguay’s plan to expand its offer of long-term funding to small and medium enterprises in the country,” said Salem Rohana,
IFC Country Manager for Argentina, Chile, Paraguay and Uruguay. “Working with financial institutions such as Banco Itau Paraguay is a key component of our strategy in Paraguay to support the country’s sustainable development through private sector growth.”
IFC’s strategy in Paraguay promotes access to finance for the productive sector, supports micro, small, and medium enterprises, fosters global trade, and protects natural resources through environmentally sustainable business practices. IFC aims to help boost financial inclusion and increased access to finance for SMEs to enhance their competitiveness in important sectors such as agribusiness, which is a key driver of economic growth and job creation in Paraguay. For more information about IFC in Latin America and the Caribbean, visit
www.ifc.org/lac
.
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
About Banco Itau Paraguay S.A.
Banco Itau Paraguay is headquartered in Asuncion, Paraguay, but it has national presence serving a client base of more than 454,000 clients through a network of 32 branches and 55 alternative service points supported by the largest ATM network in the country ( 307 ATMs). The bank is a fully owned subsidiary of the Brazilian financial holding Itau Unibanco Holding S.A., one of the largest players in the financial sector in the region. Banco Itau Paraguay is the largest bank in Paraguay in terms of assets, deposits, and equity size while being the third largest in terms of loan portfolio size.
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