The FINANCIAL -- IFC, a member of the World Bank Group, will provide $40 million to Banco CMF to expand the bank’s lending to small and medium enterprises (SMEs) in Argentina. Banco CMF provides personalized services to its SME clients, thus allowing it to address their specific lending needs.
Financing SMEs in emerging markets is key because they are an essential engine for growth and job creation, including in Argentina. It is estimated that 4 out of 5 new formal jobs are created by SMEs in emerging markets, according to IFC.
“With IFC’s partnership, we will be able to expand our support to SME clients’ growth and productivity in Argentina” said Marcos Prieto, Banco CMF’s CEO. “This financing shows IFC’s confidence in Banco CMF’s ability to promote productive enterprises in the country.”
Banco CMF became an IFC client in 2009 when it joined IFC’s Global Trade Finance Program, which facilitates trade flows through guarantees and includes a network of more than 60 banks in Latin America.
“We are pleased to continue strengthening our relationship with Banco CMF, helping improve access to finance for local productive small and medium enterprises, and promoting economic and social growth in Argentina,” said David Tinel, IFC Country Manager in Argentina, Chile, Paraguay and Uruguay. “Our financing of the financial sector in Argentina also aims to support a favorable investment climate by promoting productive investments in the country,” Tinel noted.
In Argentina, IFC has committed over $1.6 billion in sustainable private sector projects over the past eighteen months, becoming the largest international source of financing to the country’s private sector during this period. This is important at a time when the country is taking sound macroeconomic reforms to resume its path of economic growth.