Washington, D.C., November 29, 2007—
IFC, a member of the World Bank Group, today signed an agreement with Banco
de Galicia y Buenos Aires S.A. to support the bank’s onlending to small
and medium enterprises in Argentina, with a particular focus on those located
in poorer provinces.
This $50 million, eight-year loan marks IFC’s second direct financing
to Banco Galicia since the Argentine financial crisis, and the first ever
IFC project in the country to offer Argentine peso-linked financing.
Atul Mehta, IFC’s Director for Latin America and the Caribbean, said,
“Banco Galicia is a key partner for IFC in addressing the financing needs
of the medium and small-sized enterprises of Argentina’s private sector.
IFC is pleased to be able to offer its first Peso-linked loan in
Argentina to Banco Galicia.”
Banco Galicia is the largest private sector commercial bank in Argentina
in terms of assets (US$6.8 billion as of September 30, 2007) and fourth
in terms of shareholders’ equity (US$542.3 million as of September 30,
2007). Since 2004, the bank has steadily increased its private sector lending
activities while also increasing its deposit market share. In March,
the bank became the first bank in Latin America outside Brazil to adopt
the Equator Principles.
Sergio Grinenco, Vice Chairman of Banco Galicia’s Board of Directors,
said, “as one of the leading private-sector financial institutions in
Argentina, we are pleased to consolidate our strategic relationship with
IFC through this transaction, which enables us to increase our financial
support to export-oriented investment projects of small and medium sized
enterprises, thus confirming our traditional commitment to this dynamic
and large sector of the Argentine economy and our longstanding leadership
position in the provision of financial services to such sector.”
Yolande Duhem, IFC’s Senior Country Manager for Argentina and the Southern
Cone, added, “IFC is pleased to continue supporting Argentine SMEs across
the country and especially in less privileged provinces, through its partnership
with Banco Galicia This transaction allows Banco Galicia to offer long-term
funding in both dollars and local currency, an option that is not yet broadly
available to Argentine enterprises.”
About IFC
IFC, the private sector arm of the World Bank Group, promotes open and
competitive markets in developing countries. IFC supports sustainable private
sector companies and other partners in generating productive jobs and delivering
basic services, so that people have opportunities to escape poverty and
improve their lives. Through FY06, IFC Financial Products has committed
more than $56 billion in funding for private sector investments and mobilized
an additional $25 billion in syndications for 3,531 companies in 140 developing
countries. IFC Advisory Services and donor partners have provided more
than $1 billion in program support to build small enterprises, to accelerate
private participation in infrastructure, to improve the business enabling
environment, to increase access to finance, and to strengthen environmental
and social sustainability. For more information, please visit www.ifc.org.
About Banco Galicia
Founded in 1905, Banco Galicia is one of the largest private-sector banks
in the Argentine financial system and a leading financial services provider
in the country. As a universal bank, through affiliated companies and a
variety of distribution channels, Banco Galicia offers a full spectrum
of financial services to over 4.0 million customers, both individual and
corporate. Banco Galicia operates one of the most extensive and diversified
distribution networks among private sector banks in Argentina, offering
more than 380 points of contact with customers through its branches and
electronic banking facilities. The Bank’s customers also have access to
telephone banking services and e-galicia.com, the first financial Internet
portal and the first mobile payment service, respectively, established
by a Bank in Argentina. The Bank's main shareholder is Grupo Financiero
Galicia S.A., a financial services holding company.
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