On August 31, utilizing the “Latin America and Caribbean Private Sector Development Trust Fund (commonly known as TADAC)” (Note 1), which is funded by the Japan International Cooperation Agency (JICA), the Inter-American Investment Corporation (IDB Invest) signed a loan agreement with Banco Internacional S.A. (hereinafter referred to as “Banco Internacional”) under the “Latin America and Caribbean Private Sector Development Trust Fund (commonly known as TADAC)” (Note 1), funded by the Japan International Cooperation Agency (JICA). A signing ceremony was held on September 23 in Quito, the capital of Ecuador, and was attended by representatives from Banco Internacional, IDB Invest, the JICA Ecuador Office, and the Embassy of Japan in Ecuador, among others.
Tripartite Meeting to Commemorate the Signing (Held on September 23)
IDB Invest is providing Banco Internacional with a total loan of 75 million U.S. dollars, of which 25 million U.S. dollars will be contributed by TADAC. Ecuador is not only an exporter of agricultural products such as shrimp and bananas to Japan but also a resource-rich country with significant reserves of crude oil, gold, and copper, and its economic ties with Japan are deepening. Through this project, Banco Internacional is expected to expand its lending to small and medium-sized enterprises (SMEs), which will contribute to the promotion of SMEs and job creation in Ecuador, while also further strengthening bilateral relations.
(Note 1) JICA has pledged up to 1.5 billion U.S. dollars to the Trust Fund Achieving Development of Latin America and the Caribbean (TADAC), established within the Inter-American Development Bank (IDB), the largest development finance institution in Latin America and the Caribbean. TADAC is a mechanism that provides financing to private companies in coordination with loans extended by IDB Invest, the IDB Group’s private sector investment and financing arm. Through its overseas investment and financing activities, JICA contributes to TADAC with the aim of narrowing the funding gap necessary to achieve the SDGs in Latin America and the Caribbean and contributing to sustainable socioeconomic development.
・Borrowers
Banco Internacional S.A.
・Country (Target Region)
Republic of Ecuador
・Loan Amount (Maximum)
25 million U.S. dollars
・Project Name
Small and Medium-Sized Enterprise Support Program
・Business Objectives
Through a long-term loan to Banco Internacional, this project aims to enhance borrowers’ access to medium-term financing, improve the balance between working capital and loans, and help bridge the funding gap in loans to small and medium-sized enterprises (SMEs). It also aims to promote the digital transformation efforts of the borrower, streamline loan disbursement, reduce service delivery costs, enhance the customer experience, and facilitate the provision of services to a broader customer base.
・Business Overview
The financing provided under this project will be used as a source of funds to expand Banco Internacional’s lending to SMEs. It is also expected to contribute to capacity building—including improvements in segmentation and targeting—through technical assistance provided by IDB Invest.
・ Contributing to the SDGs
Goal 8 (Decent Work and Economic Growth)
Goal 9 (Build the Foundations for Industry and Innovation)
Goal 17 (Let’s Achieve Our Goals Through Partnership)
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