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Washington, DC, December 21, 2012
—IFC, a member of the World Bank Group signed today a $75 million loan agreement with Banco de Crédito e Inversiones (BCI) in Chile to provide financing for micro, small, and medium enterprises (MSMEs) that operate in underserved regions. This is IFC’s first financing to a Chilean bank.
Expanding long-term financing to MSMEs in Chile is essential to support job creation. MSMEs employ 90 percent of the labor force and represent 60 percent of gross domestic product (GDP) in the country. IFC’s financing to BCI will support SMEs included by the Corporación de Fomento de la Producción (CORFO) in the Reconstruction Program of regions still recovering from the 2009 earthquake, as well as micro-entrepreneurs financed by BCI through its NACE and RENACE programs.
The NACE program was launched in 2006 as an initiative to help entrepreneurs running companies who lack support from the formal financial system. The RENACE program was simultaneously established to support micro and small businesses that have shown good faith and willingness to pay back loans, but have experienced difficulties in developing their businesses and, therefore, lack access to formal banking services.
“IFC’s financing will support BCI’s objective to expand financial services that meet the needs of entrepreneurs and MSMEs in Chile,” said Lionel Olavarría Leyton, CEO of the bank. “At BCI we believe the market should be defined not only in terms of conventional economic needs, but also social needs, and in this context we aim to create value in society through our support for entrepreneurs.”
Salem Rohana, IFC’s Country Manager for Argentina, Chile, Paraguay, and Uruguay, said: “Through this partnership with BCI, IFC will help provide entrepreneurs and MSMEs with growth opportunities in Chile. IFC looks forward to expanding its presence in Chile by supporting local financial institutions such as BCI.”
The financing is part of IFC’s focus on supporting local financial markets to deliver development impacts and respond to the challenges faced by emerging markets. IFC aims to achieve these goals through the use of innovative financial products and mobilization, fostering micro, small and medium enterprises, encouraging corporate social responsibility, protecting natural resources through environmentally-sustainable business practices, and promoting business expansion into other emerging markets. 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. We help developing countries achieve sustainable growth by financing investment, mobilizing capital in international financial markets, and providing advisory services to businesses and governments. In FY12, our investments reached an all-time high of more than $20 billion, leveraging the power of the private sector to create jobs, spark innovation, and tackle the world’s most pressing development challenges. For more information, visit
www.ifc.org
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About BCI
BCI was formed in 1937 and is currently one of the leading financial institutions in Chile. The bank has extensive nationwide presence, providing integrated financial services through its distribution network made up of 378 branches. BCI has over 10,300 employees and serves more than 33,000 SME clients. The bank offers a wide variety of credit and non-credit products and financial services, such as factoring, insurance, securitization, and mutual funds management.
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