Active Development AidData Chinese Aid

[China Co-Financing Fund] IDB administers 10 million USD loan from CHC for Banco Continental SME Internationalization Financing Partnership

$10M USD

Funder	People's Bank of China (PBC)
Recipient Organization	Banco Continental S.A.E.C.A.
Country	Paraguay
Start Date	Dec 09, 2015
End Date	May 11, 2027
Duration	4,171 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`85368`

Grant Description

[China Co-Financing Fund] IDB administers 10 million USD loan from CHC for Banco Continental SME Internationalization Financing Partnership On 9 December 2015, the Inter-American Development Bank (IDB) signed two loan contracts with Banco Continental S.A.E.C.A., through which IDB would provide 20 million USD from its ordinary capital (Loan 3294/OC-PR), and the People's Bank of China would provide 10 million USD (Loan 3294/CH-PR) via the China Co-Financing Fund for Latin America and the Caribbean (CHC).

Both loans had a five year maturity period and a two year grace period.

IDB provided a local currency partial credit guarantee of 44 billion PYG for the 20 million USD Loan 3294/OC-PR (Guarantee 3295/OC-PR).

The loan proceeds were to be used by Banco Continental for on-lending to micro, small and medium-sized enterprises with the aim of promoting their growth and internationalization. Loans to SMEs would range from 10,000 USD to 1 million USD.

The IDB approval date for this loan financing was 15 October 2014, and it refers to this project as "PR-L1087 : Banco Continental SME Internationalization Financing Partnership". As of July 2021, the IDB lists the project status as implementation.

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

1. The project's title in Spanish is 'Alianza de Financiamiento Para la Internacionalización de PYME con Banco Continental.'

📚 Sources & References

ALIANZA DE FINANCIAMIENTO PARA LA INTERNACIONALIZACIÓN DE PYME CON BANCO CONTINENTAL RESUMEN DE PROYECTO
Environmental and Social Management Report Banco Continental (Paraguay)
SME Internationalization Finance Partnership (PR-L1087)
RESOLUCIÓN DE-131/14
ESTADOS FINANCIEROS 31 de diciembre 2015 y 2014
PR-L1087 : Banco Continental SME Internationalization Financing Partnership 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.