Quito, Ecuador, March 21, 2019 —IFC,
a member of the World Bank Group, strengthened its support of Ecuador’s
small and medium sized enterprises (SMEs) with a new $50 million loan to
Banco Internacional, of which $12.5 million would be earmarked to expand
financing to women-owned SMEs.
The loan consists of $38.5 million from IFC
and $11.5 million from the Women Entrepreneurs Debt Fund, which is managed
by IFC’s Asset Management Company. The investment is part of the Women
Entrepreneurs Opportunity Facility (WEOF), a first-of-its-kind partnership
launched in 2014 between Goldman Sachs 10,000 Women and IFC’s Banking
on Women program. The facility is dedicated to expanding access to capital
for women entrepreneurs.
“At Banco Internacional, we aim to contribute
to the economic development of Ecuador bringing in our experience, strength
and quality in providing financial services to the Ecuadorian private business
sector. The leadership of our institution in commercial credit has been
recognized by the IFC by granting us this loan, which gives us the ability
to expand our presence in the small and medium enterprises, especially
those led by women," said Francisco Naranjo, executive president for
Goldman Sachs research shows that closing
the gender credit gap could increase per capita income in emerging markets
by 12 percent by 2030. IFC’s Banking on Women program has committed 71
investments globally worth $1.89 billion and advised on 48 projects since
2010, each dedicated to closing this gap. Of these, WEOF has extended $1.18
billion in investments to 42 financial intermediaries in 29 countries.
It has also funded 13 advisory projects in 12 countries. To date, the facility
has reached over 50,000 women entrepreneurs. Goldman Sachs 10,000 Women
is committed to enabling women entrepreneurs in emerging markets to grow
their business through hands on business education and access to capital.
The Ecuadorian SME financing gap is estimated
at US$15.6 billion, or 15 percent of gross domestic product. Despite the
significant role SMEs play in the Ecuadorian economy, loans to these companies
account for only 3.6 percent of the country’s gross domestic product.
More than 30 percent of SMEs report facing constraints as result of lack
of access to finance and women-owned SMEs face similar obstacles.
“IFC is continuing to expand its support for SMEs and women entrepreneurs
in Ecuador,” said Juan Gonzalo Flores, IFC’s acting head for the Andean
region. “Our partnership with Banco Internacional is a great example of
our commitment to provide opportunities for women entrepreneurs who face
the challenge of obtaining financing for their businesses,” he said.
IFC’s strategy in Ecuador is centered on
promoting financial inclusion and climate finance. IFC also focuses
on providing financing and technical assistance to businesses that have
a strong positive impact on the export sector. IFC looks for projects
that tackle climate change, create jobs and benefit underserved populations.
IFC’s support to Ecuador began when the country became a member of the
institution in 1956, and since that time, it has invested some $800 million
IFC—a sister organization of the World Bank
and member of the World Bank Group—is the largest global development institution
focused on the private sector in emerging markets. We work with more than
2,000 businesses worldwide, using our capital, expertise, and influence
to create markets and opportunities in the toughest areas of the world.
In fiscal year 2018, we delivered more than $23 billion in long-term financing
for developing countries, leveraging the power of the private sector to
end extreme poverty and boost shared prosperity. For more information,
About Banco Internacional
Banco Internacional was founded in Quito
in 1973, has more than 1300 employees committed to the satisfaction of
its customers nationwide. Banco Internacional is the leading bank in efficiency,
it stands out for its focus on small, medium and large companies, as well
as people of high and medium income. The institution has 75 branches nationwide
in 18 provinces, in the Sierra, Costa and Amazon regions, and more than
About Goldman Sachs 10,000 Women
Goldman Sachs 10,000 Women is an initiative
to foster economic growth by providing women entrepreneurs around the world
with a business and management education and access to capital. The initiative
has reached women from 56 countries through a network of 100 academic,
nonprofit, and bank partners. In partnership with the International Finance
Corporation (IFC), Goldman Sachs 10,000 Women launched the first
of its kind global finance facility in 2014 to enable access to capital
to more women entrepreneurs. And now, in its tenth year, the 10,000
Women curriculum is available online through Coursera, creating access
to a business education in more corners of the world. For more information
on Goldman Sachs’ investment in female entrepreneurs, visit https://www.goldmansachs.com/citizenship/10000women/