GU-L1067 : Banco G&T Continental Subordinated Loan

The proposed transaction is based on the LACC Subordinated Debt Facility (RG-X1088) approved by the Bank¿s board in August 2010 and consists of a subordinated financing (which qualifies as Tier II capital under local regulatory requirements) of an approximate amount of US$45 million to Banco GYT Continental. IDB participation would support GYT¿s micro, small and medium enterprises (MSMEs) loan portfolio growth, as well its mortgage to middle and low income individuals and would help to improve the competitiveness and efficient development of the Guatemalan private sector, specifically the MSME sector as well as to reduce poverty.