The Inter-American Development Bank (IDB), a US-based multilateral finance institution that operates in Latin America and the Caribbean, recently approved a loan of USD 120 million to the Chilean government to finance the development of micro-, small, and medium-sized enterprises (MSMEs). The loan is divided into three parts: (1) USD 50 million for factoring to “fund eligible entities that neither belong to nor are associated with banks”; (2) USD 50 million to lend to “eligible Savings and Lending Cooperatives”; and (3) USD 20 million for “eligible leasing companies that neither belong to nor are associated with a bank to help them finance MSMEs…” Factoring is a process whereby a company sells future goods or services at a discount in return for immediate cash.
As of December 2015, IDB reported total assets of USD 111.1 billion.
By Jason Wei, Research Associate
Sources and Additional Resources
About Inter-American Development Bank (IDB)
The Inter-American Development Bank (IDB) is a US-based multilateral finance institution that was established in 1959 and operates in Latin America and the Caribbean. IDB works with governments, companies and nongovernmental organizations (NGOs) to provide both loans and grants to support small and medium-sized enterprises (SMEs), health, education and other sectors. IDB also provides technical assistance and research in these areas. With 48 member countries, IDB has offices in Washington, DC; Japan; France; and all 26 member countries in Latin America and the Caribbean. As of December 2015, IDB reported total assets of USD 111.1 billion.
[1] Chile to Improve and Increase Productive Financing for MSMEs with IDB Help, http://www.publicnow.com/view/987EA78C7706697DCB5E0A3C1D61F0C0FD078B89?
MicroCapital Universe Profile: Inter-American Development Bank (IDB)
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