The Inter-American Development Bank has announced another financing opportunity for midsize enterprises in Latin America and the Caribbean. The target: businesses that aim to expand operations overseas.
The bank will make available $350 million in credit guarantees to companies that wish to participate in international biddings for services provision, according to a press release. The money will go through local banks.
The development bank will also provide $70 million to commercial banks to help them extend their credit lines to companies that aim to export or invest outside the region.
The announcement, made Nov. 16 by IDB President Luis Alberto Moreno at the XXII Ibero-American Summit of Heads of State and Government in Spain, follows the bank’s decision to create a $25 million facility that will benefit micro, small and midsize enterprises. The money will help financial institutions extend credit to MSMEs in the region.
The funding aims to boost companies’ presence in the international market. The bank also plans to develop a platform that will help inform companies of potential trade partners, investors, trade rules and other data. Several of these companies don’t engage in international activities due to lack of funding and access to information, according to the press release.
It is not yet clear when the platform will be available, but Moreno said it will be developed in collaboration with export promotion agencies and business schools in Latin America and the Iberian Peninsula.
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