The International Finance Corporation (IFC), the private-investment arm of the World Bank Group, has opened credit lines totaling USD 100 million to 400 small and medium-sized enterprises (SMEs) that sell products to Mexican supermarket chain Comercial Shops Mexicana (TCM). The funds will be disbursed through PrimeRevenue, a US-based provider of multi-bank supply-chain finance, and E-Factor Network, a Mexican online community for entrepreneurs. The working capital loans are backed by the creditworthiness of TCM.
As of 2011, IFC has 182 member countries, total assets of USD 68.5 billion and USD 12.2 billion mobilized to 518 projects. The TCM project is funded through the USD 3 billion IFC Global Trade Finance Provider program, which is intended to extend the capacity of banks to deliver trade financing in challenging markets. It does this by providing risk mitigation and short-term financing in various currencies to suppliers and exporters of products produced by SMEs located in emerging markets.
By Mihaela Grindeanu, Research Associate
About International Finance Corporation (IFC): A member of the World Bank Group, the International Finance Corporation (IFC) offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of 2011, IFC has 182 member countries, total assets of USD 68.5 billion and USD 12.2 billion mobilized to 518 projects.
Sources and Additional Resources:
Ifc.org story: “IFC pone en marcha primer servicio financiero para proveedores de Tiendas Comercial Mexicana a fin de ampliar financiamiento a PYMES”, http://www.ifc.org/IFCExt/Pressroom/IFCPressRoom.nsf/0/39935536CFF0859E42257A150076E75F
MicroCapital.org story, April 19, 2012: “MICROCAPITAL BRIEF: International Finance Corporation (IFC), Wells Fargo Partner To Launch $200m Facility to Increase Trade Finance for Banks in Emerging Markets, Half in Middle East, North Africa”, https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-wells-fargo-partner-to-launch-200m-facility-to-increase-trade-finance-for-banks-in-emerging-markets-half-in-middle-east-north-africa/
MicroCapital Universe Profile: About International Finance Corporation, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation+%28IFC%29
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
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