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Buenos Aires/ Washington, D.C., April 19, 2010
—IFC, a member of the World Bank Group, is providing a $30 million long-term loan to Banco Patagonia S.A. in Argentina to increase access to finance for farmers and small and midsize agribusiness companies.
Agribusiness is an essential engine of economic growth and job creation in Argentina, accounting for approximately 30 percent of Argentina’s GDP and 30 percent of employment, and generates the bulk of the country’s exports.
IFC’s long-term loan of 5.5 years will allow Banco Patagonia to increase its operations in rural areas and provide its clients funding with longer maturities, currently scarce in the local market. Banco Patagonia, a leading financial institution in Argentina, has a nationwide distribution network with important presence in micro, small and midsize business markets, reaching up to 700,000 clients. It is also an IFC client under the Global Trade Finance Program.
Vincent Gouarne, IFC Director for Latin America and the Caribbean, said: “This financing shows IFC's commitment to support key financial players in Argentina that reach the base of the pyramid in the agribusiness sector, mainly farmers in rural areas and small and medium enterprises. Banco Patagonia has a strong role to play supporting the sustainable growth of agribusiness in the country.”
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. For more information about IFC in Latin America and the Caribbean, visit:
www.ifc.org/lac
IFC is the only international financial institution focused exclusively on the private sector, the engine of sustainable development in emerging markets. Along with the IBRD, it is currently seeking a capital increase to strengthen its ability to create opportunity for the poor in developing countries—including by promoting access to finance for key job-generating sectors as agribusiness.
About IFC
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $14.5 billion in fiscal 2009, helping channel capital into developing countries during the financial crisis. For more information, visit
www.ifc.org
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About Banco Patagonia
Banco Patagonia, the successor entity of a series of banks with a historical presence in Argentina, is one of the leading private Argentine-owned financial institutions in the Argentine financial system. Banco Patagonia has total assets of $2.4 billion. The bank is headquartered in Buenos Aires and has a network of 155 branches across the country and over 2,600 employees. For more information, visit
www.bancopatagonia.com.ar
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