[China Co-Financing Fund] IDB administers 25 million USD loan from CHC to Bank of Guayaquil for Access to Finance for Small and Medium Producers

On 29 October 2014, the Inter-American Development Bank (IDB) signed a loan contract with Banco de Guayaquil S.A. (Guayaquil Bank) to finance Access to Finance for Small and Medium Producers, through which the IDB would provide 50 million USD from its ordinary capital, including 10 million USD from the Opportunities for the Majority Financing Facility (Loan 3224A/OC-EC-1), and the People's Bank of China would provide 25 million USD (Loan 3224/CH-EC) via the China Co-Financing Fund for Latin America and the Caribbean (CHC). The IDB would also administer a B loan, which would be financed by commercial banks or other financial institutions (Loan 3244B/OC-EC-2-PN-MCTBPNB, Loan 3244B/OC-EC-1-PN-BAALPNB, Loan 3244B/OC-EC-2-NE-OIKEOOC). The IDB lists the total anticipated project cost as 100 million USD, and Guayaquil Bank was expected to provide 10 million USD of counterpart financing. According to the 2014 Annual Report of Guayaquil Bank, the IDB committed loan financing totaling 105 million USD for this project. The IDB approval date for this loan financing was 3 July 2014, and it refers to this project as "EC-L1138 : Access to Finance for Small and Medium Producers". The IDB lists the project as closed, and as of June 2017, 100% of the loan funds had been disbursed. The purpose of the project is to increase access to finance for micro, small, and medium-sized agricultural producers (SMEs) in Ecuador, through the creation of the first exclusive credit line for the agro-industrial sector, primarily in the form of investment credits and working capital. The China Co-Financing Fund was established on 14 January 2013 with a contribution of 2 billion USD by the People's Bank of China, and it is administered by the IDB. For more information, see umbrella project ID #86526.

Additional details

Transaction amount has been coded as 25 million USD under assumption that the amount authorized to be loaned on July 3, 2014 was the same amount actually loaned in the contract. However, there is not independent confirmation of this.

Number of official sources

7

Number of total sources

7