Completed Development AidData Chinese Aid

[China Co-Financing Fund] IDB administers 25 million USD loan from CHC to Bank of Guayaquil for Access to Finance for Small and Medium Producers

$25M USD

Funder	People's Bank of China (PBC)
Recipient Organization	Guayaquil Bank S.A.
Country	Ecuador
Start Date	Oct 29, 2014
End Date	Nov 17, 2030
Duration	5,863 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`85321`

Grant Description

[China Co-Financing Fund] IDB administers 25 million USD loan from CHC to Bank of Guayaquil for Access to Finance for Small and Medium Producers On 29 October 2014, the Inter-American Development Bank (IDB) signed a loan contract with Banco de Guayaquil S.A. (Guayaquil Bank) to finance Access to Finance for Small and Medium Producers, through which the IDB would provide 50 million USD from its ordinary capital, including 10 million USD from the Opportunities for the Majority Financing Facility (Loan 3224A/OC-EC-1), and the People's Bank of China would provide 25 million USD (Loan 3224/CH-EC) via the China Co-Financing Fund for Latin America and the Caribbean (CHC).

The IDB would also administer a B loan, which would be financed by commercial banks or other financial institutions (Loan 3244B/OC-EC-2-PN-MCTBPNB, Loan 3244B/OC-EC-1-PN-BAALPNB, Loan 3244B/OC-EC-2-NE-OIKEOOC).

The IDB lists the total anticipated project cost as 100 million USD, and Guayaquil Bank was expected to provide 10 million USD of counterpart financing.

According to the 2014 Annual Report of Guayaquil Bank, the IDB committed loan financing totaling 105 million USD for this project.

The IDB approval date for this loan financing was 3 July 2014, and it refers to this project as "EC-L1138 : Access to Finance for Small and Medium Producers". The IDB lists the project as closed, and as of June 2017, 100% of the loan funds had been disbursed.

The purpose of the project is to increase access to finance for micro, small, and medium-sized agricultural producers (SMEs) in Ecuador, through the creation of the first exclusive credit line for the agro-industrial sector, primarily in the form of investment credits and working capital.

The China Co-Financing Fund was established on 14 January 2013 with a contribution of 2 billion USD by the People's Bank of China, and it is administered by the IDB. For more information, see umbrella Record ID#86526.

📋 Staff Comments

Transaction amount has been coded as 25 million USD under assumption that the amount authorized to be loaned on July 3, 2014 was the same amount actually loaned in the contract. However, there is not independent confirmation of this.

📚 Sources & References

DESCRIPCIÓN DEL PROYECTO: ACCESO A FINANCIAMIENTO PARA PEQUEÑOS Y MEDIANOS PRODUCTORES A TRAVÉS DE CANALES ALTERNATIVOS
EC-L1138 : Access to Finance for Small and Medium Producers
Approach Paper: Ecuador 2012-2017
Memoria de Sostenibilidad Banco Guayaquil 2014
RESOLUTION DE-79/14 - Ecuador. Access to Financing for Micro
Small and Medium-Sized Producers through Alternative Channels. China Co-Financing Fund for Latin America and the Caribbean
Environmental and Social Management Report Banco de Guayaquil (Ecuador) SME Financing Partnership (EC-L1137 and EC-L1138)
DOCUMENT OF THE INTER-AMERICAN DEVELOPMENT BANK Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.