March 26, 2009—The IFC Recapitalization Fund will make its inaugural investment of $20 million in Paraguay's Banco Continental, which will help strengthen one of the country's leading financial institutions and ensure continued lending to small and medium enterprises.
The fund, a key IFC initiative aimed at helping mitigate the effects of the global financial crisis, will invest in Banco Continental's preferred stock, which is part of the bank's Tier 1 Capital.
Banco Continental is the largest locally owned financial institution in Paraguay. The bank provides commercial lending products and services to small and medium enterprises and corporate clients. It also provides consumer finance. An IFC client since 2007, Banco Continental serves more than 62,000 customers through a network of 31 branches.
The IFC Recapitalization Fund, founded by IFC and the Japan Bank for International Cooperation on February 2, 2009, is a $3 billion global equity and subordinated debt fund that aims to support banks considered vital to the financial system of an emerging market country. By supporting such systemic institutions the fund aims to speed up economic recovery and boost job creation while reducing the impact of the financial crisis.
To learn more, read the related press release or visit www.ifc.org/financialcrisis.
For more information contact:
Adriana Gomez
Phone: +202-458-5204
E-mail: AGomez@ifc.org
Lotte Pang
Phone: +202-758-4290
E-mail: LPang@ifc.org
