[China Co-Financing Fund] IDB administers 5 million USD loan from CHC to Banco Ganadero for SME Financing Partnership

Project narrative

On 28 March 2015, the Inter-American Development Bank (IDB) signed two loan contracts with Banco Ganadero (BGA) for an SME Financing Partnership, through which IDB would provide 10 million USD from its ordinary capital (Loan 3180A/OC-BO), and the People's Bank of China would provide 5 million USD (Loan 3180/CH-BO) via the China Co-Financing Fund for Latin America and the Caribbean (CHC). Proparco, the French Development Agency, provided an additional 10 million USD loan for the project. The purpose of this project was to support BGA in increasing access to financing for small and medium-sized businesses (SMEs) in Bolivia, with at least 50% slated for SMEs in the farming and agribusiness sectors. The IDB lists the project status as closed. A publication from the IDB, "Country Program Evaluation Bolivia 2016-2020," notes that this loan, as well as an equity investment solely from the IDB, "succeeded in expanding [Banco Ganadero's] SME portfolio during the period and exceeded the target for expanding credit to agribusiness enterprises. However, it did not achieve the target for expansion into the country’s western area or the target for improvement of the terms of the dollar-denominated SME portfolio." 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 Record ID#86526.