Lima, Perú, August 9, 2005 – The International Finance Corporation, the private sector arm of the World Bank Group, has signed an Establishment Agreement with Peru’s Ministry of Foreign Affairs, formally opening its new office in Lima. The IFC office will provide investment and advisory services in support of private businesses in the Andean region.

“IFC’s decision to strengthen its presence in Peru reflects the strong economic growth the country’s private sector has achieved in recent years, as well as its potential for continued growth.  In addition, through its expertise and leadership in sustainability, IFC can support Peru’s private sector in contributing to sustainable economic development,” said Chancellor Manuel Rodríguez Cuadros of the Ministry of Foreign Affairs.

The principal objective of the Lima office is to broaden and deepen IFC’s relationship with the countries of the Andean region, with special emphasis on Peru and Bolivia. The IFC office in Lima will provide a wide range of services, including targeted investment activities, structured finance, technical assistance and advisory services, and other support for private business.

The Lima office also serves as the headquarters for IFC’s Technical Assistance Facility for Latin America and the Caribbean (IFC Plus), which provides technical assistance and advisory services to support private sector development through improving the business environment, increasing the competitiveness of smaller businesses and broadening their access to finance, and enhancing local benefits from investments.

“Opening an office in Lima demonstrates our continuing commitment to supporting private business in Latin America, whether helping small enterprises, developing local financial markets, or financing infrastructure projects,” said IFC Acting Executive Vice President Assaad Jabre.

“Latin America continues to be a strategically important region for IFC, and we believe that having IFC staff closer to our clients in the region will enable us to provide them with better service. It should also enable us to develop partnerships with the growing number of local companies that have regional and global ambitions where IFC can bring them the benefit of its global experience, its network of government and private sector relationships in emerging markets, its broad sectoral expertise and its array of financing and risk mitigation products,” Mr. Jabre added.

The mission of IFC (www.ifc.org) is to promote sustainable private sector investment in developing countries, helping to reduce poverty and improve people’s lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses. From its founding in 1956 through FY04, IFC has committed more than $44 billion of its own funds and arranged $23 billion in syndications for 3,143 companies in 140 developing countries. IFC’s worldwide committed portfolio as of FY04 was $17.9 billion for its own account and $5.5 billion held for participants in loan syndications.

The IFC Technical Assistance Facility for Latin America and the Caribbean (IFC Plus) is a multilateral initiative backed by core IFC funds and program-specific funds from various donors (including Canada, Netherlands, Norway, and Switzerland). The facility's work program is focused on improving the business environment, enhancing local benefits from IFC investments, and broadening access to finance for and strengthening the competitiveness of small and medium enterprises. Based in Lima, the facility is operating in six countries (Bolivia, Brazil, Colombia, Honduras, Nicaragua, and Peru) and is exploring opportunities in other countries of the region.