Buenos Aires / Washington, D.C., September 9, 2010
—IFC, a member of the World Bank Group, signed a first-of-its-kind agreement with Banco de Galicia y Buenos Aires S.A. to provide $40 million to boost agriculture lending to farmers and small and midsize businesses, while reducing the environmental impact of agribusiness practices in Argentina.
The investment consists of a five-year credit line for up to $20 million for IFC’s own account to fund sustainable projects aimed at improving efficiency in the use of limited resources such as water and energy, and a three-year credit line for up to $20 million that IFC will disburse as trustee for funds provided by the OPEC Fund for International Development (OFID). This transaction is under IFC’s Global Liquidity Trade Program, of which OFID is an important contributor.
“This new investment will help consolidate our leadership position in the Argentine financial system, particularly in the agribusiness sector, which is an essential engine of economic growth and job creation,” said Daniel Llambias, Chief Executive Officer of Banco Galicia.
“IFC looks forward to enhancing its support to Banco Galicia through this new vehicle as the bank advances efforts to serve key economic sectors where access to finance is limited,” said Salem Rohana, IFC Country Manager for Argentina, Chile, Paraguay, and Uruguay. “In addition to generating important environmental benefits, this innovative “green” investment will increase the availability of medium- and long-term funding for local farmers and agribusiness firms in Argentina.”
The IFC Global Trade Liquidity Program, launched in 2009 in response to the global financial crisis, focuses on public-private partnerships and rapid implementation to increase credit for trade. The program has financed more than $6 billion of trade volume through 4,000 transactions in 40 countries.
Suleiman J. Al-Herbish, OFID’s Director-General, said, “OFID believes in placing food security as a priority within its agenda as hunger continues to grow and prices persist to increase. OFID’s financing continues to be desirable as the credit squeeze still hampers international trade.”
In Argentina, IFC supports export-oriented sectors and a select group of financial institutions, especially those that provide financial services to low-income borrowers. IFC’s strategy promotes Argentine business expansion into other emerging markets, encourages corporate social responsibility, and protects natural resources through environmentally sustainable business practices.
To learn more 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 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
.
