©image:
Banco Interamericano de Desarrollo
The Inter-American Development Bank (IDB) approved a $15 million loan to Banco Promerica de Costa Rica to help the bank expand its long-term mortgage operations and loans for environmentally sustainable projects.
The IDB loan will broaden and deepen the scope of Promerica’s key business areas, specifically in home mortgage financing for lower middle-income and middle-income individuals, as well as develop the portfolio of environmentally sustainable loans (“green loans”). The facility is part of the IDB’s strategy to support two high-impact areas of economic development.
“Through mortgage financing, the project responds to an increased demand to channel resources to a population with traditionally limited access to credit for housing.” said Daniela Carrera Marquis, head of IDB’s Financial Markets Division. “The “green loans” help increase investment and sustainable banking practices in Costa Rica, in this manner fostering environmental, social and economic benefits.”
Banco Promerica will improve opportunities for the middle-income segment to buy residential property, thus entering a new market and downscaling from its more traditional operations, oriented towards a higher income segment. This financing will allow Banco Promerica to meet the growing need for home mortgage financing from middle-income families.
“This type of financing helps an institution that is committed to serving priority areas in the development of Costa Rica, like housing and loans for “green projects,” said the head of the project team at the IDB, Jacobo De Leon.
With respect to the green loans, Banco Promerica strives to increase its portfolio and expand sustainable environmental projects. This is a new market, that counts on a limited volume of resources and that is in line with the IDB’s beyondBanking program, which encourages the principle of sustainability among financial institutions in Latin America and the Caribbean.
“It is of vital importance for Banco Promerica de Costa Rica to join a strategic partner with the prestige of IDB. The resources this organization provides are fundamental to our plans for growth in these sectors so relevant to the national economy as are residential financing and projects that contribute to the conservation of the environment”, said John Keith, Executive President of Banco Promerica de Costa Rica.
About Banco Promerica
Banco Promerica forms part of a regional network that includes financial institutions in Guatemala, Honduras, El Salvador, Nicaragua, Panama, Dominican Republic and Ecuador. As a medium-sized institution in the context of The private bank segment in Costa Rica, it has 16 branches, mainly located in the Greater Metropolitan area of San Jose. Since joining the IDB’s Trade Finance Facilitation Program (TFFP), Banco Promerica has become an active participant of the program, acting as an issuing and confirming member.
About IDB
The Inter-American Development Bank is the principal source of long-term financing for projects of economic development in Latin America and the Caribbean. Its Structured and Corporate Finance Department is responsible for projects without sovereign guaranties that include loans and partial credit guaranties for clients in both the private and public sectors.
Source: Inter-American Development Bank
More on this topic
July 2011
The entity has received a $20 million IDB loan to expand its loan portfolio to operations with environmental sustainability.
The Inter-American Development Bank today announced the approval of a "green" facility with $30 million going to Banco Atlantida in Honduras to support lending to environmentally sustainable projects.
January 2011
State banks will allocate $ 788 million through programs for all social strata.
Banco de Costa Rica (BCR), Banco Nacional and Bancrédito, have placed more than 20% of their portfolios in this area.
In the case of Banco Nacional, the institution will provide $ 535 million of which $ 347 million will be targeted for families with low and middle income.
October 2008
The Overseas Private Investment Corporation announced a $45 million loan to Banco Lafise Costa Rica, and a $60 million loan to Banco BAC San Jose.
The first project involves a total of $45 million in loans to Banco Lafise Costa Rica, a member of the regional financial institution Lafise Group, to enable it to expand its portfolio of low- and middle-income residential mortgages.
May 2009
At least 3 Nicaraguan banks obtained a loan of $10 million each from the INSS to finance low-income housing projects.
The president of the Association of Private Banks of Nicaragua (ASOBANP), Arturo Arana, told Prensa.com that the agreement with the Nicaraguan Social Security Institute (INSS) “had already been approved and 'I think that several banks already have it.
español
1601
