Ecocredit: a green product with CAF's support

In the framework of the Program, and with technical assistance resources, CAF provided financing to Banco Procredit in Ecuador, in order to:

• Support the identification and application of measures aimed at mitigating the environmental impact resulting from the Bank´s operating activities, as a strategy of corporate environmental responsibility;  
• Establish a System for the Analysis of Environmental and Social Risks which will allow the institution to guarantee the environmental sustainability and social responsibility of its investments and projects, effectively contributing to the country's sustainable development; and
• Create a green financing product, called "Ecocredit", which promotes financing for entrepreneurial initiatives with ample benefits and minimal environmental risks. 

In addition, the initiatives contributed significantly to make the bank's staff aware of environmental issues. 

Three hundred staff members of Procredit were trained in the incorporation of identification and environmental risk management within the process to analyze credit risks, in addition to subjects related with the Bank's internal environmental management, such as waste recycling. 

During the March-October 2012 period, through the Ecocredit product, Banco Procredit approved 255 projects for an accumulated value of USD 3.1 million in productive sectors such as food, metallurgical, textile, agricultural, transportation, printing services, and technology. 

The benefits of the product are preferential interest rates, longer terms, flexible guarantees, and fast procedures. 

Later, creating synergies between the Andean Biotrade Initiative, a project undertaken by CAF, with financing from the countries and the Global Environment Facility (GEF), and CORPEI CAPITAL, Ecuadorean promotion institution, an agreement was signed with Banco Procredit to train their staff regarding subjects related to biotrade, and prepare them for the granting of a credit line of USD 500,000 which the Initiative will grant Procredit to finance biotrade projects in small and medium-sized companies. 

It is expected that the agreement for the credit line will be signed in November 2013. This credit line will help expand the scope and multiply the positive environmental impacts of the Ecocredit green product, while at the same time demonstrate the feasibility of financing for biotrade in Latin America and the Caribbean to the banks of region.