IFC to support Brazil's SMEs via US$81mn loan

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Monday, June 19, 2017

IFC, a member of the World Bank Group, invested up to US$81.2mn in Brazilian medium sized bank Banco Industrial do Brasil to provide financing for small and medium companies.

"The investment is particularly supporting women's entrepreneurship, as at least 25% of the total amount of the financing will be directed to women-owned enterprises," it said.

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The financing is comprised of a five year loan worth US$26.7mn loan from IFC's own account, and a two year US$34.5mn syndicated loan.

"Expanding access to finance for SMEs (small and medium enterprises) is a priority of IFC's strategy in Brazil due to that sector's enormous potential to spur economic growth and job creation," said Ramiro Garcia, IFC's head of Financial Institutions Group for Brazil and the Southern Cone.

Small and medium companies in Brazil are considered crucial for economic recovery. With the increase on unemployment across the nation, many Brazilians have started their own companies in recent years. The sector account for 27% of country's GDP, according to IFC.

Brazil's economy contracted 3.8% in 2015 and 3.6% in 2016. Economists expect an expansion of 0.4% for this year.