MICROCAPITAL BRIEF: IFC Lends $125m to Banco Familiar, Banco Continental of Paraguay for MSMEs, Agribusiness

The International Finance Corporation (IFC), a member of the US-based World Bank Group, recently announced agreements to issue loans to two commercial banks in Paraguay, USD 100 million to Banco Continental and USD 25 million to Banco Familiar. Banco Continental has agreed to use its funding to expand its lending to small and medium-sized enterprises (SMEs) and agricultural companies. Banco Familiar is to use its loan to increase its services to micro-, small and medium-sized enterprises (MSMEs). Regarding the second loan, an IFC statement includes the argument that, “Improving access to finance for MSMEs and strengthening their competitiveness are…crucial for the country’s economic development.”

Established in 1980 and based in Asunción, Banco Continental maintains 64 branches and employs 1,200 staff members as of 2019. The firm’s financial data may be accessed via https://www.bancontinental.com.py/publicaciones/publicaciones/.

Established in 2009 and also headquartered in Paraguay’s capital, Banco Familiar has 54 branches and 600,000 customers as of year-end 2018. As of 2017, it reported USD 658 million in total assets, USD 486 million in deposits and a gross loan portfolio of USD 475 million.

The International Finance Corporation (IFC), a US-based multilateral development bank and member of the World Bank Group, offers loans, equity investments, advisory and risk mitigation services, and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of 2018, IFC reports total assets of USD 94 billion.

The World Bank Group is a multilateral organization whose goal is “to end extreme poverty and promote shared prosperity in a sustainable way.” As of 2018, it has 189 member nations. The group encompasses: (1) the International Bank for Reconstruction and Development and the International Development Association, which make up the World Bank; (2) IFC; (3) the Multilateral Investment Guarantee Agency; and (4) the International Centre for Settlement of Investment Disputes. During the 12 months ending June 2018, the World Bank Group disbursed funds totalling USD 46 billion.

By Daena McClintock, Research Associate

Sources and Additional Resources

IFC press release on Banco Familiar transaction
https://ifcextapps.ifc.org/ifcext/pressroom/ifcpressroom.nsf/0/CFC788F98668B84585258410005144EF?OpenDocument

IFC press release on Banco Continental transaction
https://ifcextapps.ifc.org/IFCExt/Pressroom/IFCPressRoom.nsf/0/44D0D8188FC2F90885258403005C0043

Banco Familiar homepage
https://www.familiar.com.py/

Banco Continental homepage
https://www.bancontinental.com.py/

Microfinance Information Exchange (MIX) profile on Banco Familiar
https://www.themix.org/mixmarket/profiles/banco-familiar

IFC homepage
https://www.ifc.org/

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