Announcement of IFC Financing for Small and Medium Sized Enterprises in Argentina April 4, 1986

International Finance Corporai FOR RELEASE: Friday, April 4, 1986 CONACT Monique Amaudry Press Release No. 86/30 (202) 676-9331 IFC FINANCING FOR SHALL AND MEDIUM-SIZED ENTERPRISES IN ARGENTINA The International Finance Corporation will provide a variable rate credit line of $10 million to be lent to Argentine medium-sized private sector enterprises by Banco Roberts S.A. acting as IFC's agent. Banco Roberts will lend IFC's medium term funds on behalf of IFC together with its own short term loans for matching amounts. IFC will bear the credit risk on its loans. The project will provide IFC with a cost-effective way of meeting part of the financing requirements of medium-sized private sector enterprises in Argentina which are too small to receive IFC's support directly. IFC is the private sector arm of the World Bank and is the leading multilateral organization promoting private sector development by providing equity participations and long term loans without government guarantees to private enterprises in developing countries. To be eligible for IFC's lending, private sector companies in Argentina will have to have total assets not exceeding $30 million equivalent prior to receiving any funds under the project. Fmphasis will be placed on agricultural and agro-industries, manufacturing industries, export-oriented industries and service industries. IFC's loans may be used to finance fixed and current assets including land, building, machinery, equipment, inventory and receivables. They may not be used to refinance existing borrowings. - more - - 2 - Banco Roberts will administer IFC's line of credit and intends to seek and finance about 10 different sub--projects each requiring not more than 10% of the funds available under the project. The maximum size of an IFC loan will be $1.5 million. IFC's Board has approved 16 previous investments in Argentina for a total of $202.2 million in textiles and fibers, food and food processing, pulp and paper products, iron and steel, chemicals and petrochemicals, cement and construction material, agribusiness, steel and capital markets. - end -