US$100 million loan for productive reactivation of Ecuador

A US$100 million loan was today granted to Corporación Financiera Nacional (CFN) to finance the Global Multi-Sectoral Credit Program, and the Fund for Small Industry and Crafts (FOPINAR.

The agreement was signed by CAF Vice President & Deputy CEO Enrique Berrizbeitia and the Ecuadorian ambassador in Caracas, Alfonso Barrera Valverde, on behalf of CFN.

The CAF vice president said the loan was part of the CAF policy of developing private activities which are compatible with the objective of integrating its shareholder countries into subregional and international markets, while contributing to strengthening wholesale banks which finance projects for productive reactivation in the respective economies.

CAF is an international financial organization which supports the sustainable development of its shareholder countries and regional integration, formed by Bolivia, Colombia, Ecuador, Peru and Venezuela, along with Brazil, Chile, Mexico Paraguay and Trinidad and Tobago.

The funds granted to CFN will be used to acquire fixed assets, working capital, services related to projects to be financed, finance leasing operations and replacement of existing investments.

As a wholesale bank, CFN finances the production and services provided by the Ecuadorian private sector, including export of traditional goods, particularly the work of marketing, promotion and technical assistance, which has established its role of supporting Ecuadorian national development and expanding placement of funds through many banks and financial institutions around the country.

Strengthening the private sector The objectives of the Global Multi-Sectoral Credit Program include support for development of national activities by means of medium- and long-term finance for installation, modernization and diversification of Ecuadorian private companies.

The Program also promotes the compatibility of the projects with the objectives of preservation and improvement of environmental quality; identifies priority investment projects for the socioeconomic development of the country; develops specific technical assistance programs to strengthen business capacity and the internal and external competitiveness of productive activities, and cooperates with the institutional strengthening and building up of the CFN as a wholesale bank.

The funds will be used to grant loans through the financial system for projects to start up, expand and modernize private-sector providers of goods and services, as well as supporting the Development Fund for Small and Craft Industries (FOPINAR) which will provide financial assistance for projects for the start up, modernization and diversification of Ecuadorian craft enterprises.