Asunción, Paraguay, February 2, 2016—IFC,
a member of the World Bank Group, is providing a seven-year $90 million
loan to Banco Itau Paraguay S.A., a leading bank in Paraguay, to increase
access to finance for small and medium enterprises, helping to support
the development of a sector that plays a critical role in the Paraguayan
IFC’s financing consists of a $60 million
loan on IFC’s own account and a $30 million
the IFC Managed Co-Lending Portfolio Program, a
syndications platform that offers institutional investors an opportunity
to participate in IFC’s future senior loan portfolio.
Small and medium enterprises (SMEs) have
been key in the continued poverty reduction trend observed in the country
during the last decade. Together with micro enterprises, they account for
more than 63% of the total employed population in Paraguay. One of the
most relevant challenges SMEs still face for their sustainable growth,
however, is the lack of access to finance, which affects their competitiveness.
According to a survey of the National Department of Statistics of Paraguay,
54% of medium-sized companies do not have access to finance.
IFC’s investment will allow Banco Itau Paraguay
to continue providing its clients with access to funding at longer maturities
and more appropriate structures, thus helping them to enhance productivity
and grow. This is IFC’s third investment in Banco Itau Paraguay. IFC and
Banco Itau Paraguay have been working together in Paraguay since 2007,
when the bank joined IFC's Global Trade Finance Program.
“The long-term relationship with IFC has
been very important to support our continued commitment in expanding access
to finance in Paraguay,” said Viviana Varas, CEO of Banco Itau Paraguay.
“This new financing will enable us to increase our footprint and financing
alternatives for small and medium enterprises which is a crucial segment
of Paraguay’s economy.”
“We look forward to continue to support
Banco Itau Paraguay’s plan to expand its offer of long-term funding to
small and medium enterprises in the country,” said Salem Rohana,
IFC Country Manager for Argentina, Chile,
Paraguay and Uruguay. “Working with financial institutions such as Banco
Itau Paraguay is a key component of our strategy in Paraguay to support
the country’s sustainable development through private sector growth.”
IFC’s strategy in Paraguay promotes access
to finance for the productive sector, supports micro, small, and medium
enterprises, fosters global trade, and protects natural resources through
environmentally sustainable business practices. IFC aims to help boost
financial inclusion and increased access to finance for SMEs to enhance
their competitiveness in important sectors such as agribusiness, which
is a key driver of economic growth and job creation in Paraguay. 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 emerging markets. Working with more than 2,000 businesses worldwide,
we use our capital, expertise, and influence, to create opportunity where
it’s needed most. In FY15, our long-term investments in developing countries
rose to nearly $18 billion, helping the private sector play an essential
role in the global effort to end extreme poverty and boost shared prosperity.
For more information, visit www.ifc.org
About Banco Itau Paraguay S.A.
Banco Itau Paraguay is headquartered in Asuncion,
Paraguay, but it has national presence serving a client base of more than
454,000 clients through a network of 32 branches and 55 alternative service
points supported by the largest ATM network in the country ( 307 ATMs).
The bank is a fully owned subsidiary of the Brazilian financial holding
Itau Unibanco Holding S.A., one of the largest players in the financial
sector in the region. Banco Itau Paraguay is the largest bank in Paraguay
in terms of assets, deposits, and equity size while being the third largest
in terms of loan portfolio size.