Washington, D.C./Asunción, Paraguay,
June 24, 2014—IFC, a member of the World Bank Group, will provide
a $7 million loan to Bancop S.A. in Paraguay to expand access to finance
for local farmers, and small and medium enterprises (SMEs) in the agribusiness
sector. Agribusiness is a key driver of economic growth and job creation
in Paraguay. It accounts for 39.8 percent of the country’s GDP and employs
a third of its workforce, with about 900,000 jobs.
Bancop is the first bank in Paraguay
wholly owned by cooperatives, obtaining a universal banking license from
the Central Bank in January 2012 and formally starting operations in July
16, 2012. Bancop was founded by 27 Paraguayan shareholders, all of them
“IFC’s support to Bancop shows its
commitment to promoting innovative financial institutions that serve an
essential productive sector in Paraguay”, said Dimas Ayala, CEO of Bancop.
“We are pleased that IFC values our bank as an important platform for
providing long-term financing to agricultural and cattle SMEs in Paraguay."
This financing to Bancop is part of
IFC’s strategy to support Paraguay’s competitive advantage as a country
rich in natural resources and focused on developing a strong agricultural
and cattle sector that aims to integrate farmers and producers in the regional
and global food supply chain.
“We are pleased to support Bancop,
as it expands efforts to support agribusiness producers and exporters in
Paraguay,” said Ramiro García, IFC’s Relationship Manager for Financial
Institutions in Paraguay. “We hope this is IFC’s first of a series of
future transactions with Bancop. IFC’s financing will allow the bank to
provide its clients with access to funding with longer maturities, enabling
them to undertake capital investments and expansion projects at longer
tenors and more attractive costs, with stronger economic and social impact”.
IFC’s strategy in Paraguay promotes
business expansion into other emerging markets, supports micro, small,
and medium enterprises, fosters global trade, 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, a member of the World Bank Group,
is the largest global development institution focused exclusively on the
private sector. Working with private enterprises in more than 100 countries,
we use our capital, expertise, and influence to help eliminate extreme
poverty and promote shared prosperity. In FY13, our investments climbed
to an all-time high of nearly $25 billion, leveraging the power of the
private sector to create jobs and tackle the world’s most pressing development
challenges. For more information, visit www.ifc.org.
About Bancop S.A.
Bancop is headquartered in Asuncion,
and has established already 4 branches, and 1 Non Correspondent Banking,
in the most productive sector of the country.. It counts with 72 staff
and 9.804 active clients. Bancop’s mission is to support the sustainable
development of the productive sector in Paraguay, committed to delivering
high quality, innovative and competitive products and services to its clients.
The Bank’s shareholders are 27 production cooperatives spread throughout
the country. A majority of these cooperatives have had their origins in
the agribusiness sector and are in turn owned by their members. For more
information, visit www.bancop.com.py