Overseas Private Investment Corporation Access to Finance: OPIC Support for Small Business Lending in Latin America Deborah Moronese, Insurance October 8, 2008

OPIC: An Introduction For more than 35 years, the Overseas Private Investment Corporation (OPIC) has been the primary U.S. government agency charged with mobilizing U.S. private sector capital and skills to foster economic and social development in developing countries. OPIC accomplishes its mission by providing financing and political risk insurance to projects of all sizes in a range of sectors. OPIC currently operates in 154 countries around the globe, including nearly all countries in Central and South America. Support for small business is an OPIC priority. In partnership with the US Treasury and the Inter-American Development Bank, OPIC has responded to the President’s call by significantly expanding the availability of risk-sharing guarantees and loans to eligible banks in Latin America to extend their financing activity for small businesses. OPIC currently anticipates $150 million will be available for small business lending through several different mechanisms it has available.

Vehicles for OPIC to Support Small Business Lending Guarantees of U.S. bank loans to banks in the region OPIC already has agreements with major U.S. banks to share risk on loans they make to their correspondent banks in the region for small business on-lending Direct loans from OPIC to banks in the region OPIC can provide long-term loans for small business lending directly to banks with sufficient US involvement Partial guarantees on small business loan portfolios OPIC can share default risk for pools of dollar-denominated and local currency small business loans Partial guarantees on local bond issues OPIC can credit enhance bonds issued by banks in the region to raise funds for small business lending Since this SME initiative began, OPIC has supported a total of 7 projects, Since OPIC became involved in this SME initiative, OPIC has committed to 7 projects, all of which have been framework agreements –where OPIC provided a guarantee to a US bank who then lends to a foreign bank focusing on lending to small businesses. The aggregate amount of these projects approximates $130mm. Of these 7 projects, three focus on supporting loans to Paraguayan banks. OPICs commitment in these three projects is $75mm. While OPIC Finance can offer these four types of financing products – gtees, DL, partial guarantees, to date OPIC has primarily provide guarantees to major US banks.

Bank Eligibility for OPIC Support Significant U.S. involvement – may be achieved by: Partial U.S. ownership in the bank Loans from U.S. banks under OPIC frameworks Other loans from U.S. banks Purchase of bonds by U.S. investors Bank financial soundness and commitment to building small business loan portfolio Developmental benefit from small business loans Preference given to projects where MIF is also providing technical assistance. GUIDELINES: U.S. INVOLVEMENT IN A PROJECT. OPIC WILL CONDUCT AN ANALYSIS TO DETERMINE THE VIABILITY AND FINANCIAL STRENGTH OF THE US BANK AND LOCAL BANKS INVOLVED IN THE PROJECT. SOCIAL AND ECONOMIC DEVELOPMENT AS A RESULT OF THIS PROJECT. THE LAST POINT IS THAT OPIC WILL PREFER TO SUPPORT A PROJECT- GIVE A LOAN OR GUARANTEE TO A PROJECT THAT IS ALSO INVOLVED WITH RECEIVING TECHNICAL SUPPORT FROM MIF AS PART OF THIS “TECHNICAL COOPERATION” PART OF THE PROGRAM.

OPIC CONTACT INFORMATION: DEBORAH MORONESE 202-336-8647 dmoro@opic.gov RICHARD GREENBERG 202-336-6816 rgree@opic.gov www.opic.gov

Overseas Private Investment Corporation Acceso a financiamiento: Apoyo para prestamos a pequeños negocios en América Latina Deborah Moronese, Insurance Octubre 8, 2008

OPIC: En Breve Por mas de 35 años, la OPIC ha sido la principal agencia gubernamental de los EE.UU. encargada de movilizar inversiones americanas hacia mercados en desarrollo, fomentando desarrollo económico y social en esos mercados. OPIC realiza su misión ofreciendo programas de financiamiento y garantías (seguros) de riesgo político para proyectos en varios sectores y de escala del monto. Actualmente la OPIC opera en 154 países, incluyendo casi toda Centro y Sudamérica. Apoyar pequeñas empresas es una prioridad para la OPIC. In partnership with the US Treasury and the Inter-American Development Bank, OPIC has responded to the President’s call by significantly expanding the availability of risk-sharing guarantees and loans to eligible banks in Latin America to extend their financing activity for small businesses. OPIC currently anticipates $150 million will be available for small business lending through several different mechanisms it has available.

Medios para Apoyar Prestamos a Pequeños Negocios Garantías a bancos Americanos para sus prestamos a bancos regionales La OPIC se realizó acuerdos con varios bancos Americanos para compartir riesgos respecto a préstamos con sus bancos corresponsales en la Región los cuales serán dirigidos a pequeñas empresas locales. Préstamos directos de la OPIC a bancos en la región. OPIC puede ofrecer prestamos a largo plazo a un banco con vinculación suficiente con los EE.UU. Garantías parciales a carteras de préstamos a pequeñas empresas OPIC puede compartir el riesgo de la cartera de prestamos en dólares y moneda local Garantías Parciales a emisiones locales de bonos OPIC puede garantizar bonos emitidos por bancos regionales para atraer recursos dirigidos a prestamos de pequeñas empresas Since this SME initiative began, OPIC has supported a total of 7 projects, Since OPIC became involved in this SME initiative, OPIC has committed to 7 projects, all of which have been framework agreements –where OPIC provided a guarantee to a US bank who then lends to a foreign bank focusing on lending to small businesses. The aggregate amount of these projects approximates $130mm. Of these 7 projects, three focus on supporting loans to Paraguayan banks. OPICs commitment in these three projects is $75mm. While OPIC Finance can offer these four types of financing products – gtees, DL, partial guarantees, to date OPIC has primarily provide guarantees to major US banks.

Requerimientos para obtener apoyo de OPIC: Participación Americana - puede darse por medio de: Participación accionaria o socio americano en el banco Prestamos de un banco americano bajo los “convenios marco” de la OPIC Otros prestamos de bancos americanos Compra de bonos por ciudadanos americanos (beneficiarios). Las finanzas y estados financieros del banco deudor cumple con las políticas de crédito e inversión de la OPIC y el banco esta comprometido a fomentar su portafolio o cartera de pequeñas empresas Muestra beneficios de desarrollo como resultado de prestamos a pequeño negocio Preferencia a proyectos que reciben el apoyo del MIF en asistencia técnica. GUIDELINES: U.S. INVOLVEMENT IN A PROJECT. OPIC WILL CONDUCT AN ANALYSIS TO DETERMINE THE VIABILITY AND FINANCIAL STRENGTH OF THE US BANK AND LOCAL BANKS INVOLVED IN THE PROJECT. SOCIAL AND ECONOMIC DEVELOPMENT AS A RESULT OF THIS PROJECT. THE LAST POINT IS THAT OPIC WILL PREFER TO SUPPORT A PROJECT- GIVE A LOAN OR GUARANTEE TO A PROJECT THAT IS ALSO INVOLVED WITH RECEIVING TECHNICAL SUPPORT FROM MIF AS PART OF THIS “TECHNICAL COOPERATION” PART OF THE PROGRAM.

www.opic.gov CONTACTENOS: DEBORAH MORONESE 202-336-8647 dmoro@opic.gov RICHARD GREENBERG 202-336-6816 rgree@opic.gov www.opic.gov