WASHINGTON, D.C., October 5, 1998 -- The
International Finance Corporation, together with Barclays Bank, PLC and
Landesbank Rheinland-Pfalz, today announced the successful completion of
a US$60 million financing package to support Banco del Suquía S.A., a medium-sized
regional bank in Argentina.
The financing package, which takes the form of a credit line, includes
loans amounting to US$35 million for IFC’s account and syndicated loans
of US$20 million for Barclays and US$5 million for Landesbank Rheinland-Pfalz.
Banco del Suquía will use the financing package to fund the bank's
small and medium-sized enterprise lending and residential mortgage lending
in the central provinces of Argentina, including Cordoba, Santa Fé, Entre
Ríos, Mendoza, and Tucumán.
IFC Executive Vice President Mr. Jannik Lindbaek signed the loan agreements
on behalf of the Corporation at the World Bank/IMF Annual Meetings. Present
at the signing ceremony were Mr. Roque Fernández, Minister of Finance of
Argentina, and Mr. Pedro Pou, Governor of the Central Bank of Argentina.
The successful completion of this financing package demonstrates IFC’s
confidence in and strong support for Argentina, said Mr. Lindbaek. The
transaction represents Banco del Suquía’s first international syndication
and sends a positive signal in this time of uncertainty in emerging markets.
Banco del Suquía is one of three Argentine-owned banks among the top 12
privately owned banks in the country. Its lending operations to small
and medium-sized enterprises account for more than half of its total lending.
As of June 30, 1998, IFC’s investment portfolio in Argentina amounted
to $992 million, accounting for 9.2 percent of IFC’s net portfolio. In
the fiscal year ending in June, IFC invested US$170 million in seven projects
in Argentina, ranging from agribusiness and manufacturing to education
The project is consistent with IFC's strategy to support the development
of small and medium-sized enterprises and strengthen Argentina's banking
IFC, part of the World Bank Group, fosters economic growth in the developing
world by financing private sector investments, mobilizing capital in the
international financial markets, and providing technical assistance and
advice to governments and businesses.