Bancóldex Emergency Line for MSMES

repaid

The project consists of supporting Banco de Comercio Exterior de Colombia S.A. (“Bancóldex”), with a senior loan. The total amount of the loan is up to US$170 million, composed as follows: (i) A loan from IDB Invest for an amount of up to US$100 million; (ii) US$50 million mobilized through possible co-financing to be financed by IDB Invest in its capacity as administrator of the China Co-financing Fund for Latin America and the Caribbean (the “China Fund”); and (iii) Co-loan from Development Finance Institute Canada (FinDev Canada) for an amount of up to US$20 million. The resources will be used to support MSME’s needs through the emergency line Program “Colombia Responde para Todos” or through other financial instruments created to alleviate the current COVID-19 situation."Colombia Responde para Todos" is an emergency line which seeks to expand financing to MSME’s from different economic sectors, through financial intermediaries. IDB Invest loan and support is key to provide liquidity and short to medium term resources to MSMEs so it’s sustainability and feasibility is ensured in a context of cash flow pressure due to the lockdown and economic activity paralysis.