MICROCAPITAL BRIEF: Belgian Investment Company for Developing Countries (BIO) Loans $5m to Costa Rican Bank Banco Improsa for Central American Small and Medium-Sized Enterprises (SMEs)

The Belgian Investment Company for Developing Countries (BIO), a public-private institution that was established in 2001, recently loaned USD 5 million to Banco Improsa, a Costa Rican bank focusing on small and medium-sized enterprises (SMEs), in an effort to support the growth of the bank’s leasing business in Nicaragua, Honduras, El Salvador and Guatemala. The investment by BIO is in the form of a senior loan.

As of 2009, BIO had EUR 261 million (USD 319 million) in net commitments, which are defined as the volume of financing contracts signed, less cumulated repayments, plus contracts formally approved by the board.

Banco Improsa does not report to the US-based nonprofit Microfinance Information Exchange (MIX) and there is no financial information available on the bank elsewhere online.

By Medha Ravi, Research Associate

About The Belgian Investment Company for Developing Countries (BIO):
The Belgian Investment Company for Developing Countries (BIO), established in 2001, works to promote strong private sectors in developing countries to enable them to gain access to sustainable development and prosperity. It is a public-private partnership between the Belgian government, represented by the Ministry of Development Cooperation, and the SBI/BMI (Société Belge d’Investissement International S.A. – Belgian Corporation for International Investment), which each hold 50 percent of the institution. BIO has invested in approximately 90 private-sector projects and is present in approximately 60 countries as of 2009. In 2009, BIO had EUR 261 million (USD 319 million) in net commitments (the volume of financing contracts signed, less cumulated repayments, plus contracts formally approved by the board). In December 2009, the Belgian government allocated EUR 97 million (USD 118 million) in new funds to BIO.

About Banco Improsa:
Established in 1986, Banco Improsa is a Costa Rican bank that focuses on small and medium-sized enterprises (SMEs). It originally was established as a services company and was then converted to a bank in 1995. Apart from Costa Rica, it has operations in Nicaragua, Honduras, El Salvador and Guatemala.

Sources and Additional Resources:

BIO Press Release. “BIO increases presence in the banking sector in Central America”, http://www.bio-invest.be/index.php?option=com_news&view=news&id=22

MicroCapital.org story, August 4, 2010, “MICROCAPITAL BRIEF: Belgian Investment Company for Developing Countries (BIO) Loans $4m Each to Prasac and Sathapana, Microfinance Institutions (MFIs) in Cambodia”, https://www.microcapital.org/microcapital-brief-belgian-investment-company-for-developing-countries-bio-loans-4m-each-to-prasac-and-sathapana-microfinance-institutions-mfis-in-cambodia/

MicroCapital Universe: Belgian Investment Company for Developing Countries (BIO). https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Belgian+Investment+Company+for+Developing+Countries+%28BIO%29

MicroCapital Universe: Banco Improsa, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Banco+Improsa

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