IDB Invest, a member of the Inter-American Development Bank (IDB) Group, provided a $50 million loan to Banco Guayaquil. The funds will be used to finance the growth of Banco Guayaquil's micro, small and medium-sized business (MIPYME) portfolio and 50 percent will be destined to finance micro-enterprises led by women.
The loan, which has a tenor of up to five years, provides long-term financing to Banco Guayaquil to increase the availability of resources for the country’s MSME. The project also allows for increased access to more financing for women-led microenterprises and to implement a strategy with a gender focus with which Banco Guayaquil seeks to attract microentrepreneurs in the country.
MSME in Ecuador have enormous potential to generate output, employment and income. According to the Ministry of Industry and Productivity of Ecuador, 89 percent of the country’s businesses are microenterprises, and these are concentrated in Quito and Guayaquil. Its capacity to reach higher levels of participation in the local and international market is conditioned by the lack of funding. Less than half of Ecuadorian SME have access to bank loans and only 6 percent of the country’s microcredit comes from private banks.
This transaction is expected to potentially contribute to six Sustainable Development Goals (SDGs) of the United Nations: No Poverty (SDG 1), Gender Equality (SDG 5), Decent Work and Economic Growth (SDG 8), Industry, Innovation and Infrastructure (SDG 9), Reduced Inequalities (SDG 10) and Responsible Production and Consumption (SDG 12).
The IDB Invest deal is complemented by technical assistance that will support Banco Guayaquil to attract the women's market and will carry out market research to develop a program for the inclusion of persons with disabilities. The gender and inclusion strategy consists of developing a value proposition for women-led SME and microcredit for rural women. It will also analyze the needs of access to financial services of the disabled population in two aspects: internally, with corporate practices that attract this type of talent, and externally, with a market study to know their needs as clients.
About IDB Invest
IDB Invest, a member of the Inter-American Development Bank (IDB) Group, is a multilateral development bank committed to the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects so they can achieve financial results and maximize the region’s economic, social, and environmental development. With a portfolio of $12.1 billion in assets under administration and 329 clients in 21 countries, IDB Invest provides innovative financial solutions and advisory services in response to its clients’ needs in a variety of sectors.
About Banco Guayaquil
Banco Guayaquil is one of the main financial institutions in Ecuador, with 95 years of experience and AAA rating, the highest in Ecuadorian banking. It has a total of $6 billion of more contingent assets, a credit portfolio of $3.2 billion and $3.4 billion in deposits from the public. The Bank offers a wide variety of financial services through more than 6,000 physical care points and provides innovative solutions through its digital channels. Banco Guayaquil handles the Visa, Mastercard and American Express brands.