The International Finance Corporation (IFC), the private-investment arm of the World Bank Group, recently loaned USD 30 million to Banco Regional, a commercial bank based in Paraguay, to improve access to financial services for small and medium-sized enterprises (SMEs). Although the term is not specified, IFC’s investment is described as “long-term” with the intent of allowing Banco Regional to increase its presence in rural communities and offer longer-term loans to SMEs. According to IFC, SMEs in Paraguay account for approximately 80 percent of employment and 60 percent of the country’s gross domestic product (GDP).
Nicolas Trociuk, President of Banco Regional, was quoted as saying, “This transaction will enable us to continue contributing to the sustainable development of small and medium enterprises, while strengthening our relationship with IFC. It confirms our commitment to this key sector of the Paraguayan economy and our determination to promote credit growth in Paraguay.” As of 2009, Banco Regional reported total assets of PYG 6.5 trillion (USD 1.3 billion).
By Julie Moksim, Research Associate
About the International Finance Corporation (IFC): The International Finance Corporation (IFC) is a member of the World Bank Group that was created to support private sector development, mobilize private capital and provide advisory and risk mitigation services. IFC offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of 2011, IFC has 182 member countries that drive its policies and approve disbursements. As of June 30, 2010, IFC reported net income of USD 1.75 billion, total assets of USD 61 billion and return on assets of 3.1 percent.
About Banco Regional: Banco Regional is a commercial bank headquartered in Encarnacion, Paraguay. Banco Regional has 35 branches in Paraguay as of April 2011. Rabobank holds a 40-percent stake in Banco Regional and local private shareholders collectively own the remaining 60 percent. As of 2009, Banco Regional reported total assets of PYG 6.5 trillion (USD 1.3 billion).
Sources and Additional Resources:
International Finance Corporation (IFC) Press Release: “IFC’s $30 Million to Paraguayan Bank to Increase Access to Finance for Smaller Businesses”, April 12, 2011, http://www.ifc.org/ifcext/media.nsf/content/SelectedPressRelease?OpenDocument&UNID=C8AC1EDADD7D51EF8525787000540F02
MicroCapital.org Story, September 7, 2009: International Finance Corporation (IFC) Invests $1.2m in Paraguay’s Financiera El Comercio, microcapitalorg-story-international-finance-corporation-ifc-assists-forus-bank-in-russia-with-hedging-of-currency-and-interest-rate-risk
MicroCapital’s Microfinance Universe Profile: International Finance Corporation (IFC)
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation+%28IFC%29
MicroCapital’s Microfinance Universe Profile: Banco Regional
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Banco+Regional
Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/
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