MICROCAPITAL BRIEF: International Finance Corporation (IFC) Loans $40m to Banco Internacional of Ecuador for On-lending to Small, Medium Enterprises (SMEs), Women-Owned Businesses

The International Finance Corporation (IFC), a member of the US-based World Bank Group that offers financial services to businesses and governments in developing countries with the aim of increasing economic growth, recently announced that it has lent USD 40 million to Banco Internacional, a commercial bank in Ecuador. The aim of the loan is to facilitate on-lending to small and medium-sized enterprises (SMEs). An unspecified portion of the loan will be dedicated to women-owned businesses.

Mr Francisco Naranjo, the executive president of IFC, said that “with the support from IFC, Banco Internacional will have the capacity to increase lending to small and medium sized enterprises, especially to businesses which are operated by women, which supports the reason why our institution is one of the leaders among banks in the disbursement of productive loans”[1]. Mr Carlos Leiria Pinto, head of IFC for the Andean Region, added that “IFC’s support for Banco Internacional is aligned with our broader strategy in Ecuador, as it helps support jobs and enhances financial services to create a more inclusive financial marketplace for critical sectors of the economy”[1].

In Ecuador, 71 percent of women-owned SMEs have insufficient access to the banking system according to the finding of a recent research that was conducted by the McKinsey/World Bank Group Enterprise Survey.

IFC has 184 member countries and reported total assets of USD 77.5 billion as of fiscal year-end 2013. Banco Internacional reported total assets of USD 386.7 million, a credit portfolio of USD 236.7 million, return of assets of 1.10 percent and return on equity of 15.58 percent as of December 31, 2013.

By Alíz Crowley, Research Associate

About International Finance Corporation

The International Finance Corporation (IFC), a US-based multilateral development bank and member of the World Bank Group, offers loans, equity investments, advisory and risk mitigation services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of 2014, IFC has 184 member countries that drive its policies and approve disbursements. In June 2014, IFC reported total assets of USD 84.1 billion, net income of USD 1.4 billion and return on assets of 1.8 percent.

About Banco Internacional Ecuador

Banco Internacional is a commercial bank in Ecuador that was founded in 1973. The bank focuses on corporate clients, small and medium-sized enterprises (SMEs) and personal banking. As of 2015, the bank serves approximately 400,000 clients and has a network of 87 branches. The organization reported total assets of USD 386.7 million, return of assets of 1.10 percent and return on equity of 15.58 percent as of December 31, 2013.

Sources and Additional Resources

[1] International Finance Corporation, News, IFC Provides $40 Million to Banco Internacional in Ecuador to Boost Lending For Business Sector, with Focus on Women-Owned SMEs

[2] Financial, IFC Provides $40 Million to Banco Internacional in Ecuador

[3] Banco Internacional, Annual Report 2013

[4] World Bank Group Enterprise Surveys Website, Ecuador

MicroCapital, April 23, 2015, International Finance Corporation (IFC) to Provide $4.1m Risk Sharing Facility to Cameroonian Bank Banque Internationale du Cameroun pour l’Épargne et le Crédit (BICEC) for Agricultural Lending

MicroCapital, April 21, 2015, International Finance Corporation (IFC) to Provide Consulting Services to An Binh Joint Stock Commercial Bank (ABBANK) to Finance Small, Medium-sized Enterprises (SMEs) in Vietnam

MicroCapital, January 13, 2015, Absolute Portfolio Management’s Vision Microfinance Funds Invest $8.5m in Microfinance Institutions in Cambodia, Costa Rica, Ecuador, Peru

MicroCapital Universe Profile: International Finance Corporation

MicroCapital Universe Profile: Banco Internacional

Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at https://www.microcapital.org/products-page/

 

Similar Posts: