MICROCAPITAL BRIEF: IFC Loans $75m to Banco Continental of Paraguay for SMEs

The International Finance Corporation (IFC), a member of the US-based World Bank Group, recently announced an agreement to provide a loan of USD 50 million to Banco Continental, a commercial bank established in Paraguay in 1980.  Additionally, the IFC-managed Managed Co-Lending Portfolio Program will lend the bank USD 25 million. Both loans are expected to be used for on-lending to small and medium-sized enterprises (SMEs). The co-lending portfolio program is funded by the People’s Bank of China.

According to a statement attributed to Banco Continental CEO Hugo Ubeda, “IFC’s continued support to Banco Continental will bolster our efforts to expand lending to small and medium-sized enterprises, especially those focused on the export sector. This new investment will consolidate our leadership in the financial sector in Paraguay and our capacity to lend to SMEs that in many cases are located in rural areas with low banking penetration.”

As of 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. As of 2011, Banco Continental reported assets of USD 1.9 billion and equity of USD 174 million.

By Makai McClintock, Research Associate

About International Finance Corporation (IFC)
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.

Sources and Additional Resources:

The Financial article, “IFC provides $75 million to Banco Continental to Boost Access to Finance in Paraguay,” http://www.finchannel.com/index.php/business/item/45393-ifc-provides-75-million-to-banco-continental-to-boost-access-to-finance-in-paraguay

Moody’s Research Report, “Moody’s rates Banco Continental S.A.E.C.A.,” https://www.moodys.com/research/Moodys-rates-Banco-Continental-SAECA–PR_247144

MicroCapital Universe Profile: International Finance Corporation (IFC)

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