DEG expects 2011 financing in Latin America to reach levels similar to record 2010

- Monday, May 16, 2011

DEG expects 2011 financing in Latin America to reach levels similar to record 2010

German development institution DEG expects its financing this year in Latin America and the Caribbean (LAC) to reach similar levels as in 2010, Justus Vitinius, head of DEG's Latin American department, told BNamericas.

DEG provided a record 360mn euros (US$510mn) in financing - equity investments and loans - last year in LAC, which made the region its largest worldwide for the first time ever. In 2009, DEG's financing commitments to the region amounted to 198mn euros.

DEG focuses on the financial, infrastructure, agriculture and industrial sectors in LAC, with the former making up roughly a third of its regional financial commitments.

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In the financial sector, DEG has mostly focused on providing financing to banks, but it is likely to provide more financing to the region's insurance sector during the next several years, the executive said.

DEG is in the process of studying LAC's insurance market and therefore currently has an "opportunistic approach" to insurance investment until it has established a clear focus in this sector, he said.

Brazil and Mexico are the countries in the region that will receive the largest share of DEG's investments and loans this year, Vitinius said.

DEG is part of German banking group KfW Bankengruppe and has provided financing to private companies in more than 130 countries. In LAC, DEG has offices in Brazil, Mexico and Peru.