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.
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.
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