The government-backed US International Development Finance Corporation (DFC) recently agreed to invest USD 40 million in Guatemala in the following segments: (1) a loan of USD 19.5 million to Guatemala-based real estate company Destino Desarrollos to aid in the construction of “approximately 2,000 homes and associated infrastructure” deemed “affordable” in the cities of Coban, Fraijanes and Quetzaltenango; (2) with support from the US Agency for International Development (AID), a loan guarantee of USD 15 million to Guatemala-based bank Interbanco, to cover the local-currency equivalent of USD 30 million in lending to micro-, small and medium-sized enterprises (MSMEs) in regions with large indeginous populations that experience high rates of outmigration; and (3) an investment of USD 6 million in Brazil-based agriculture broker Agro Atlantic to aid in the expansion of a banana plantation in southwestern Guatemala.
DFC was launched in 2020 to “help businesses expand into emerging markets, foster growth and improve lives in the developing world while reinforcing US foreign policy and national security interests.” The organization issues equity placements, insurance, technical assistance and research in areas such as “energy, healthcare, critical infrastructure and technology.” Upon its founding, DFC took over the work of the Overseas Private Investment Corporation (OPIC) as well as the Development Credit Authority of USAID. During 2020, DFC brought in net income of USD 232 million, closing the year with assets of USD 12 billion.
By Harriet Ritchie, Research Associate
Sources and Additional Resources
DFC press release
https://www.dfc.gov/media/press-releases/dfc-investments-guatemala-are-driving-economic-growth
Agro Atlantic homepage
https://agroatlantic.com/
Destino Desarrollos homepage
https://www.destinodesarrollos.com/
Interbanco homepage
https://www.interbanco.com.gt/
DFC 2019-2020 annual report
https://www.dfc.gov/sites/default/files/media/documents/DFC_2020_Annual_Report.pdf
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