The International Finance Corporation (IFC), a unit of the World Bank Group, recently agreed to loan USD 55 million to Argentina’s Banco Industrial (Bind) to provide small and medium-sized enterprises (SMEs) with “longer-term financing than [is] currently available in the local market.” An estimated 70 percent of SMEs in the country have difficulty accessing credit. David Tinel, IFC’s Regional Manager for the Southern Cone, states that for SMEs, “Longer-term credit is crucial to plan, seek growth and hire new employees.”
Bind is a private bank based in the city of Buenos Aires whose mission is to support nationwide growth and development. The bank offers personal, business and corporate banking, with an emphasis on SMEs. As of 2017, Bind has assets worth ARS 18.6 billion (USD 613 million), holds approximately ARS 14.8 billion (USD 487 million) in deposits and operates approximately 30 branches. As of December 2016, the bank has approximately 350,000 accounts, a return on average assets of 20.4 percent, a return on average equity of 2.04 percent, and a loan portfolio of ARS 6.97 billion (USD 226 million).
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. IFC has 184 member countries, and it reports total assets of USD 93 billion as of June 2017. During the year ending that month, it disbursed a total of USD 10 billion and earned return on assets of 1.6 percent and return on equity of of 5.9 percent.
The World Bank Group is a multilateral organization whose goal is “to end extreme poverty and promote shared prosperity in a sustainable way.” As of 2018, it has 189 member nations. The group encompasses (1) the International Bank for Reconstruction and Development and the International Development Association, which make up the World Bank; (2) IFC; (3) the Multilateral Investment Guarantee Agency; and (4) the International Centre for Settlement of Investment Disputes. During 2017, the World Bank Group disbursed a total of USD 44 billion.
By Erik McDonald, Research Associate
Sources and Additional Resources
IFC press release
https://ifcextapps.ifc.org/IFCExt/Pressroom/IFCPressRoom.nsf/0/213ECE6E17347B15852582EC004AF702
IFC home page
https://www.ifc.org/
Bind home page
https://www.bind.com.ar/
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