Developmental Investment Activities
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Dominican Republic
The IIC approved a $30 million loan to Banco Popular Dominicano C.A., consisting of a $10 million A loan from the IIC and a $20 million B loan from international commercial banks. The proceeds will be used to provide medium- and long-term financing to medium-size Dominican companies, mainly exporters. These subloans will enable industrial, agribusiness, tourism, energy, transportation, communications, infrastructure, and service companies to implement expansion projects and purchase machinery and equipment, as well as provide them with working capital. In line with the Dominican Republic's efforts in the area of technological revamping, loans for infrastructure projects will target development in productive sectors.
| IIC loan | $10 million |
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Number of end beneficiaries | 10–20 |
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Job creation | 100–200 |
|
Export earnings | $5 million–$10 million per year |
|
GDP contribution | $20 million–$30 million per year |
In another transaction designed to bolster development in one of its member countries, the Inter-American Investment Corporation will provide funding for small and medium-size enterprises in the Dominican Republic. The funding will be in the form of direct medium- and long-term loans for modernizing and/or expanding these enterprises through an agency line to Banco Popular Dominicano, C.A., one of the leading financial institutions in that country. The agency line will be for up to $30 million, up to $15 million of which shall be provided by the IIC and up to $15 million by Banco Popular Dominicano as the agent. The IIC loans to each of the borrower firms shall not exceed $1.5 million nor be less than $300,000. Banco Popular shall participate in financing the eligible projects under the same terms and conditions as the IIC. However, it may participate with larger amounts than the IIC.
| IIC agency line | $15 million |
|
Number of end beneficiaries | 30–50 |
|
Job creation | 300–500 |
|
Export earnings | $3 million per year |
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GDP contribution | $10 million per year |
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