The International Finance Corporation (IFC), a member of the World Bank Group, and the OPEC (Organization of the Petroleum Exporting Countries) Fund for International Development (OFID), a multilateral development finance institution based in Vienna, recently announced an agreement to provide up to USD 40 million to Banco de Galicia y Buenos Aires SA (Banco Galicia), an Argentinian bank, in support of an agribusiness credit line and sustainability projects in Argentina. The first piece of the agreement, a five-year, IFC-funded credit line of up to USD 20 million, will fund agribusiness projects that promote sustainability, especially through efficient use of water and energy resources. The second piece, a three-year credit line of up to USD 20 million, will be funded by OFID but disbursed by IFC through their partnership in IFC’s Global Liquidity Trade Program [1]. Objectives for the investment include providing the agribusiness sector with previously unavailable access to loans; alleviating hunger and increasing food security; increasing growth in, and availability of funding for, the agribusiness sector; and promoting environmental sustainability.
In April 2010, IFC provided a USD 30 million loan to Banco Patagonia SA, a commercial bank in Argentina that will in turn make loans to farmers and small and medium-sized agribusiness in Argentina [2].
By Lindsey Shaughnessy, Research Associate
About Banco de Galicia y Buenos Aires SA (Banco Galicia): Banco de Galicia y Buenos Aires SA (Banco Galicia), founded in 1905, is a universal bank in Argentina. Banco Galicia provides approximately 4.2 million clients with personal banking, credit, investment, mortgage, insurance and e-banking services. As of June 30, 2009, Banco Galicia reports total assets of ARS 25.6 billion (the equivalent of USD 6.48 billion). Banco Galicia does not report to the Microfinance Information Exchange (MIX), the microfinance information clearinghouse.
About Banco Patagonia SA: Banco Patagonia is a commercial bank headquartered in Buenos Aires, Argentina. It was founded as a brokerage house in 1976 and became a commercial bank in 1988. Fifty-one percent of the bank is owned by Banco do Brasil, a Brazilian commercial bank. Banco Patagonia provides loans to individuals as well as to small and medium-sized businesses. As of the end of 2009, its assets total USD 3.6 billion, and it has 155 branches.
About the International Financial Corporation (IFC): A member of the World Bank Group, the International Finance Corporation (IFC) offers loan and debt securities, equity investments, advisory services and technical assistance to alleviate poverty and promote open and competitive markets in developing countries. The IFC has 182 member countries that “collectively determine its policies, and approve investments.” In fiscal year 2009, IFC’s new investments totaled USD 14.5 billion.
About the OPEC Fund for International Development (OFID): The OPEC (Organization of the Petroleum Exporting Countries) Fund for International Development, initially founded in 1976 as the OPEC Special Fund, is a multilateral development finance institution based in Vienna. OFID’s mission is to foster relationships between developing countries, finance development through grants and loans and work to eradicate poverty. As of July 2010, OFID reports having disbursed cumulative development assistance of USD 12.2 billion, loans of USD 7.5 billion to 1,013 development projects and 1,221 grants totaling USD 492 million.
Sources and Additional Resources:
[1] International Finance Corporation (IFC), “IFC, OFID Provide $40 Million for First ‘Green’ Agribusiness Credit Line in Argentina”, September 9, 2010. http://www.ifc.org/IFCExt/pressroom/IFCPressRoom.nsf/0/283BDF581D2C3CDA8525779900531482?OpenDocument
[2] MICROCAPITAL BRIEF: “International Finance Corporation (IFC) to Provide $30m Loan to Banco Patagonia, a Commercial Bank in Argentina, to Lend to Farmers and Small and Medium-sized Agribusinesses”, April 26, 2010. https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-to-provide-30m-loan-to-banco-patagonia-a-commercial-bank-in-argentina-to-lend-to-farmers-and-small-and-medium-sized-agribusinesses/
MicroCapital’s Microfinance Universe profile: Banco de Galicia y Buenos Aires S.A.
MicroCapital’s Microfinance Universe profile: Banco Patagonia SA
MicroCapital’s Microfinance Universe profile: International Finance Corporation (IFC)
MicroCapital’s Microfinance Universe profile: OPEC Fund for International Development (OFID)
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