Washington, D.C./Buenos Aires, Argentina,
July 15, 2016 – IFC, a member of the World Bank Group, will provide
$50 million to Banco Patagonia to expand the bank’s long-term lending
to small and medium enterprises (SMEs) in Argentina. Banco Patagonia is
a leading source of financing for SMEs in the country and supports more
than 42,000 companies, mainly in the agribusiness sector.
IFC’s five-year financing will allow Banco
Patagonia to provide long-term funding for SMEs which are an essential
engine for growth and job creation in emerging markets. SMEs are estimated
to create 4 out of 5 new formal jobs in these markets.
“We are committed to supporting our SME
clients’ growth and productivity as well as their important role as community
builders,” said Juan Mazzon, Banco Patagonia’s CFO. “This financing
shows IFC’s confidence on Banco Patagonia’s ability to promote productive
enterprises, which is our main mission.”
IFC’s new financing comes at a time when
Argentina is taking sound macroeconomic reforms to resume its path of economic
growth. It also aims to support a favorable investment climate by promoting
productive investments in the country.
“This new financing for Banco Patagonia
is part of IFC’s commitment to support key financial players in Argentina
that can contribute to expand funding for productive small and medium enterprises.
Access to finance is essential to promote economic and social growth in
Argentina.” said Marcelo Castellanos, IFC Regional Industry Manager for
Financial Institutions in Latin America and the Caribbean.
In 2006 Banco Patagonia became a member of
IFC’s Global Trade Finance Program, which facilitates trade flows through
guarantees and includes a network of more than 60 banks in Latin America.
In Argentina, IFC has committed over $1.6
billion in sustainable private sector projects over the past twelve months,
becoming the largest international source of financing to the country’s
private sector during this period.
IFC’s strategy in Argentina is focused on
financing projects with significant development impact for spurring economic
growth, innovation and job creation. Priority sectors include agribusiness,
infrastructure and renewable energy; competitive manufacturing; strengthening
long-term financing for companies, including small and medium enterprises
(SMEs); and helping improve investment climate for business start-ups and
SME growth. For more information about IFC in Latin America and the Caribbean,
IFC, a member of the World Bank Group, is
the largest global development institution focused on the private sector
in emerging markets. Working with more than 2,000 businesses worldwide,
we use our capital, expertise, and influence, to create opportunity where
it’s needed most. In FY15, our long-term investments in developing countries
rose to nearly $18 billion, helping the private sector play an essential
role in the global effort to end extreme poverty and boost shared prosperity.
For more information, visit www.ifc.org
About Banco Patagonia
Banco Patagonia is a member of Grupo Banco
do Brasil, one of the top financial conglomerates in Latin America. Banco
Patagonia is one of the leading private Argentine-owned financial institutions
in Argentina. It supports a diversity of productive sectors including SMEs,
agribusiness, corporates, public sector and individuals. It has established
a network of more than 200 customer service offices distributed across
the country. For more information please visit: www.bancopatagonia.com.ar.