Buenos Aires, 17th November,
2016—IFC, a member of the World Bank Group, is partnering with Banco
Galicia to boost Argentina’s agribusiness industry by offering an array
of services that will help drive energy efficiency and improve the competitive
edge of this crucial sector for the country’s economy.
IFC will advise and work jointly with Banco
Galicia to develop a program to support energy and resource efficiency
for its agribusiness clients in Argentina. Through this project, IFC will
support Banco Galicia in conducting market research to identify opportunities
for enterprises in the agribusiness sector. The goal is to gauge their
specific needs and design proposals that will help them improve their business
while promoting sustainability best practices. The project will also strengthen
the bank’s technical capacity to generate value for its clients and meet
the needs of the market.
“Agribusiness is a key economic sector for
Argentina and for Banco Galicia it represents a strategic business segment.
We are committed to supporting the sector in upgrading their technologies
to enhance productivity and competitiveness and ultimately contribute to
the creation of employment. This partnership with IFC represents an opportunity
to maintain Galicia’s leadership in the market by introducing innovative
sustainable finance solutions to our clients”, said Fabián Kon, CEO of
The project targets an important sector of
Argentina’s economy, which ranks as one of the largest in Latin America.
Argentina is a leader in food production, with large scale industries in
the sectors of agriculture and cattle ranching, accounting for 11% of gross
domestic product. However, the rapid changes in the global market
requires that this sector takes new initiatives to upgrade its practices
and implements more sustainable and efficient production systems that will
help improve its competitiveness. The Argentinean agribusiness sector offers
great opportunities to adopt newer, highly efficient and cleaner technologies
and processes that will allow it to retain its leadership.
The agreement also helps to further strengthen
the partnership between IFC and Banco Galicia. Earlier in 2016 IFC agreed
to provide $130 million to Banco Galicia to expand the bank’s long-term
lending to small and medium enterprises (SMEs) and to develop a new program
to support climate finance projects in Argentina.
“The financial sector must play a crucial
role as an engine of green and inclusive growth and our partnership with
Banco Galicia will serve to promote the implementation in Argentina of
international best-practices in this area,” said David Tinel, IFC’s country
manager in Argentina. “Our work with financial institutions such as Banco
Galicia, a leader in Argentina’s banking sector, is essential to IFC’s
efforts to promote sustainable growth in the country,” said Tinel.
This new agreement will enable Banco Galicia
to promote knowledge generation and capacity building with clients leveraging
IFC global experience in sustainable energy finance, and to make use of
the different tools available to finance environmentally-friendly projects,
aligned with the country’s environmental strategy and commitments, and
international best practices.
In Argentina, IFC has committed more than
$2.1 billion in sustainable private sector projects over the past 15 months.
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 to improve investment
climate for business start-ups and SMEs growth.
IFC, a member of the World Bank Group, is
the largest global development institution focused on the private sector
in emerging markets. Working with 2,000 businesses worldwide, we use our
six decades of experience to create opportunity where it’s needed most.
In FY16, our long-term investments in developing countries rose to nearly
$19 billion, leveraging our capital, expertise and influence to help the
private sector end extreme poverty and boost shared prosperity. For more
information, visit www.ifc.org.
About Banco Galicia
Banco Galicia is the second largest private
sector bank in the financial system in Argentina, leader in the provision
of financial services in the country and has a strong commitment to climate
finance. The Bank is recognized as the market leader in its range
of value propositions to give a full, close and sustainable coverage to
its clients, making it ideally positioned to launch a product focused on