WASHINGTON – The Executive Board of the Inter-American Development Bank (IDB) approved $203.2 million in financing for the Productive Investment Financing Program for SMEs in Ecuador, aimed at increasing investments and strengthening the competitiveness of small and medium-sized enterprises (SMEs) through the second-tier operations of the Corporación Financiera Nacional B.P. (CFN).
The program includes an IDB loan of $190 million and three different types of financing from the Green Climate Fund (GCF) and the Amazon Bioeconomy Fund managed by the IDB: a $10 million loan; a non-reimbursable investment grant of $1.7 million; and a non-reimbursable technical cooperation grant of $1.5 million.
The program seeks to expand long-term productive credit for SMEs with a territorial segmentation approach covering metropolitan, intermediate, and eastern provinces. For the latter—those in the Ecuadorian Amazon—the goal is to build capacity in financing offerings for SMEs engaged in bioeconomy businesses.
More than 3,200 SMEs nationwide, including 200 in the Amazon region, will directly benefit from the program’s actions.
CFN will use its second-tier credit lines to transfer program resources to eligible commercial banks at market rates, which will then provide long-term sub-loans to SMEs focused on financing productive investment projects.
The entity will also implement a pilot financing scheme for SMEs in the Amazon, channeling resources to intermediary financial institutions, offering incentives to commercial banks, and providing technical assistance to strengthen investment management capacity in bioeconomy projects.
This program is part of Amazonia Forever, an IDB Group initiative for sustainable development in the region, which aims to work together on forest and climate conservation and improve people’s quality of life by offering economic alternatives.
The $190 million loan will be financed with IDB ordinary capital and has a repayment term of 25 years, a grace period of 5.5 years, and an interest rate based on SOFR. The $10 million loan from the GCF has a repayment term of 20 years, a grace period of 5.5 years, and an annual interest rate of 0.75%, plus service and commitment fees.
About the IDB
The Inter-American Development Bank (IDB), a member of the IDB Group, is devoted to improving lives across Latin America and the Caribbean. Founded in 1959, the Bank works with the region’s public sector to design and enable impactful, innovative solutions for sustainable and inclusive development. Leveraging financing, technical expertise, and knowledge, it promotes growth and well-being in 26 countries. Visit our website: https://www.iadb.org/en.
Romina Nicaretta
