Operation for US$50 million approved for Colombian SMEs

The Andean Development Corporation (CAF) today approved at its CXIII Board Meeting in Caracas an increase in the credit facility granted to the Foreign Trade Bank of Colombia (Bancoldex) for US$50 million destined for the needs of small and medium-sized enterprises (SMEs) in this country.

CAF executive president Enrique García said it is the first operation that the international lender has financed in local currency (Colombian pesos). The operation will contribute to strengthening the country’s financial system and capital market.

The facility, which is for an amount equivalent to US$50 million, will be granted through instruments in Colombian pesos issued by the CAF on the Colombian capital market.

Bancoldex is a Colombian development bank that works as a wholesale bank, whose mission is to assist to exporters and SMEs. The bank plays a role of primary importance in the administration’s priority programs.

The bank currently has a line of credit from the CAF for financing foreign trade and working capital operations up to US$80 million, with current exposure of US$58 million.

Through the credit facility granted to the Bancoldex, the CAF injects funds into the SME sector, which both the Corporation and the Colombian government regard as strategically important.

Bancoldex is characterized by its financing schemes adapted to the needs of exporters and SMEs, which are considered as areas of prime importance in the government’s economic program.