Washington, D.C., April 12, 2011—IFC,
a member of the World Bank Group, is providing a $30 million long-term
loan to Paraguay’s Banco Regional S.A.E.C.A. to help increase access to
finance for local small and midsize firms with limited funding for medium-
and long-term investment projects.
Small and medium enterprises play an
important role in the Paraguayan economy, generating about 80 percent of
employment and 60 percent of gross national product. However, these companies
find it difficult to access credit especially in rural areas.
IFC’s loan will allow Banco Regional
to increase its operations in rural areas and provide its small and medium
enterprise clients with longer term loans, which are currently scarce in
the local market. The loan also will enable entrepreneurs to undertake
capital investments at longer tenors, while supporting the competitiveness
of the sector, strengthening the supply chain, and expanding opportunities
for rural communities.
Nicolas Trociuk, President of Banco
Regional, said, “This transaction will enable us to continue contributing
to the sustainable development of small and medium enterprises, while strengthening
our relationship with IFC. It confirms our commitment to this key sector
of the Paraguayan economy and our determination to promote credit growth
Dolika Banda, IFC Director for Global
Financial Markets, said, “This long-term credit facility shows IFC's commitment
to key financial players in Paraguay that reach small and medium enterprises
within all areas of the country. Given its strong nationwide presence and
distribution network, Banco Regional plays an important role in the sustainable
growth of smaller businesses in the country.”
IFC’s strategy in Paraguay includes
promoting business expansion into other emerging markets, supporting micro,
small, and medium enterprises, fostering global trade, and protecting 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 on the private sector
in developing countries. We create opportunity for people to escape poverty
and improve their lives. We do so by providing financing to help businesses
employ more people and supply essential services, by mobilizing capital
from others, and by delivering advisory services to ensure sustainable
development. In a time of global economic uncertainty, our new investments
climbed to a record $18 billion in fiscal 2010. For more information, visit
About Banco Regional S.A.E.C.A.
Banco Regional, Paraguay’s largest
bank in terms of assets, is headquartered in Encarnación and has a national
presence with 35 branches across the country. Banco Regional is consolidating
its role as a universal bank with a significant presence in both the retail
and SME sectors. The bank is currently owned by Rabo Development B.V. or
Rabobank, which holds 40 percent share of the bank's capital; and local
private shareholders, who collectively own 60 percent of the bank’s shares.
For more information, visit www.bancoregional.com.py.