The Inter-American Investment Corporation approved last year a total of $192 million in financing for 22 projects in twelve countries. Included were lines of credit for private companies in the Dominican Republic, Guatemala, Honduras, and Nicaragua, which were hard hit by hurricanes Georges and Mitch. The credit lines will help the countries to rebuild by creating 14,000 jobs and generating $100 million in foreign currency revenue.

One beneficiary of IIC financing is SANTHER, a waste recycling company in Fortaleza, Brazil. (Photo: David Mangurian- IDB)

Eleven percent of the 1999 funding was for equity investments and the remainder for loans. Two of the year’s three equity investments went to investment funds with a total capitalization of $175 million, giving the Corporation’s financing a leverage of 10 to 1. Six of the loans will be cofinanced; $56 million of the Corporation’s own resources will thus mobilize a total of $78 million in funding from banks and other third parties. More than 75 percent of the total amount of IIC funding approved this year will go to the less-developed countries in the region.

During its past 10 years of operations, the IIC has approved a total of $1.2 billion for 223 projects. Net commitments total $722 million; $621 million have been disbursed to 144 projects, and 112 projects are now completely disbursed. Twenty-seven projects have completed the cycle, the borrowers having repaid their IIC loans. During this period, the IIC has provided direct or indirect financing for more than 2,000 small and medium-size enterprises.

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