IFC Financing of up to $100 M to Sudameris Supports the Expansion of Access to Credit for SMEs in Paraguay, with a Focus on Women-owned Enterprises
The International Finance Corporation (IFC), the largest global development institution focused on the private sector in emerging markets, announced a new loan of up to $75 million in Sudameris Bank S.A.E.C.A (Sudameris), one of the leading firms in the Paraguayan financial sector. The loan will increase access to finance for small and medium enterprises (SMEs) in Paraguay, which in turn will have a positive impact on job creation and the economic recovery from the effects caused by the COVID-19 pandemic and climate change. Additionally, a trade line for up to $25 million was reinstated.
SMEs play a central role in the creation of dynamic, competitive, and inclusive economies, and are also important sources of net job growth in emerging markets. However, the formal SME finance gap is about $4 billion in Paraguay, with around 20 percent of SMEs not having sufficient access to financial products. IFC and Sudameris will help close the financing gap for this key segment.