Private Sector Operations in 2001

In 2001, the Fund extended lines of credit to two Latin American finance institutions that specialize in on-lending to small and micro-businesses.

Bolivia

Beneficiary: Banco Bisa S.A.
Type of Instrument: Line of credit
Sector: Commercial Banks
Amount: $5 million
Approved: November 6, 2001

The line of credit to Banco Bisa, one of the leading commercial banks in Bolivia, will be used to make financing available to medium-sized enterprises. Provision of long-term financing to Banco Bisa will enable the bank to expand its scope of activity in this sector, thereby assisting in the maintenance and creation of employment opportunities and improvement in general economic growth.

Paraguay

Recipient: Vision Finanzas S.A.
Type of Instrument: Line of credit
Sector: Micro-finance
Amount: $2 million
Approved: June 13, 2001

The purpose of the credit line is to support the growth and development of private micro and small enterprises in Paraguay through a specialist micro-finance institution, Vision Finanzas. The growth of the manufacturing industry, which includes medium-sized enterprises, and the informal economy, which includes micro-enterprises, frequently requires investments of a medium or long-term nature from the local market. The Fund's long-term credit line is particularly suitable as financing resources currently available in the local market are only of a short-term nature. Vision Finanzas operates nationwide and has a long tradition in servicing the needs of micro-enterprises.

Peru

Recipient: Banco de Micro-Empresa S.A. (Mibanco)
Type of Instrument: Line of credit
Sector: Micro-finance
Amount: $5 million
Approved: August 28, 2001

A line of credit was approved to Mibanco, a leading bank specializing in micro-financing for on-lending to the micro and small enterprise sector. Proceeds of sub-loans will be used to finance the expansion of existing enterprises or to support the creation of new ones. The resources will make available longer term financing than is currently available from the local markets. Given Peru's heavy reliance on the small business sector and its contribution to employment, together with the lack of long-term funding available to micro-enterprises, the role of Mibanco is critical in ensuring adequate financing is made available to this sector.