The Inter-American Development Bank approved a line of credit for investment projects of up to $1 billion to increase productivity and promote sustainable development in Chile, with a focus on finance, climate action, and internationalization. The bank also authorized a first $400 million operation under that line of credit to ramp up the productivity of the country's micro, small and medium-sized enterprises (MSMEs).
The individual operations under this line of credit will seek to give businesses access to productive financing, promote the digital and green transition, strengthen capacities and human capital for innovation, and foster internationalization to increase productivity. They will also promote gender parity in the productive ecosystem system and foster the rise of new sectors for environmental sustainability and the fight against climate change.
The first individual operation is a results-based investment loan that will give MSMEs access to financing. It will target enterprises that are located outside the Santiago metropolitan region, led by women, or engaged in climate action. It will also build the digital capabilities of MSMEs, especially women-led ones.
The program’s executing agency, the Production Development Corporation (CORFO), will channel resources for access to financing for MSMEs through non-bank financial institutions or intermediaries in the CORFO MSME Program. It will also fund women-led MSMEs that carry out entrepreneurial initiatives and activities and support climate actions at MSMEs through green credits.
Furthermore, the program will fund scholarships for workshops that train MSMEs to use digital skills and tools to transform their processes and services. There will also be specialization courses in disciplines associated with e-commerce and digital marketing.
Over 170,000 MSMEs will benefit from the program, while the asynchronous e-learning courses and master classes on the PYMES Online platform will reach 7,000 people. Another 850 people will receive CORFO's Human Capital Scholarships, and the program will also strengthen CORFO and 22 financial institutions.
The first $400 million operation under the credit line for investment projects has a 25-year repayment term, a 5.5-year grace period, and an interest rate based on the Secured Overnight Financing Rate (SOFR).
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José Francisco Demichelis
IDB Project Team Leader