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Washington, D.C., April 12, 2011
—IFC, a member of the World Bank Group, is providing a $30 million long-term loan to Paraguay’s Banco Regional S.A.E.C.A. to help increase access to finance for local small and midsize firms with limited funding for medium- and long-term investment projects.
Small and medium enterprises play an important role in the Paraguayan economy, generating about 80 percent of employment and 60 percent of gross national product. However, these companies find it difficult to access credit especially in rural areas.
IFC’s loan will allow Banco Regional to increase its operations in rural areas and provide its small and medium enterprise clients with longer term loans, which are currently scarce in the local market. The loan also will enable entrepreneurs to undertake capital investments at longer tenors, while supporting the competitiveness of the sector, strengthening the supply chain, and expanding opportunities for rural communities.
Nicolas Trociuk, President of Banco Regional, said, “This transaction will enable us to continue contributing to the sustainable development of small and medium enterprises, while strengthening our relationship with IFC. It confirms our commitment to this key sector of the Paraguayan economy and our determination to promote credit growth in Paraguay.”
Dolika Banda, IFC Director for Global Financial Markets, said, “This long-term credit facility shows IFC's commitment to key financial players in Paraguay that reach small and medium enterprises within all areas of the country. Given its strong nationwide presence and distribution network, Banco Regional plays an important role in the sustainable growth of smaller businesses in the country.”
IFC’s strategy in Paraguay includes promoting business expansion into other emerging markets, supporting micro, small, and medium enterprises, fostering global trade, and protecting natural resources through environmentally sustainable business practices. 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 developing countries. We create opportunity for people to escape poverty and improve their lives. We do so by providing financing to help businesses employ more people and supply essential services, by mobilizing capital from others, and by delivering advisory services to ensure sustainable development. In a time of global economic uncertainty, our new investments climbed to a record $18 billion in fiscal 2010. For more information, visit
www.ifc.org
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About Banco Regional S.A.E.C.A.
Banco Regional, Paraguay’s largest bank in terms of assets, is headquartered in Encarnación and has a national presence with 35 branches across the country. Banco Regional is consolidating its role as a universal bank with a significant presence in both the retail and SME sectors. The bank is currently owned by Rabo Development B.V. or Rabobank, which holds 40 percent share of the bank's capital; and local private shareholders, who collectively own 60 percent of the bank’s shares. For more information, visit
www.bancoregional.com.py
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