ANNOUNCEMENT 15 Jul 2020
In July 2020, the World Bank's Multilateral Investment Guarantee Agency (MIGA) provided a USD 400 million guarantee scheme to Bancóldex in order to back credits of Colombian businesses that were negatively affected by the COVID-19 pandemic.
NUMBER OF INTERVENTIONS
Bancóldex. News. “BANCÓLDEX CUENTA CON GARANTÍA HASTA POR US$400 MILLONES DE MIGA PARA RESPALDAR CRÉDITOS A EMPRESARIOS BAJO CRISIS DEL COVID-19”. 15/07/2020. Available at: https://www.bancoldex.com/noticias/conseguir-financiacion-por-parte-de-inversionistas-en-estos-momentos-no-es-tarea-facil-estos-400-3723
On 15 July 2020, the World Bank’s Multilateral Investment Guarantee Agency (MIGA) and the Business Development Bank of Colombia (Bancóldex) announced the provision of a USD 400 million scheme to guarantee special credits given to Colombian businesses that were negatively affected by the COVID-19 pandemic.
The guarantee aims to ensure the continuity of financing through the special credit lines of Bancóldex, by backing loans from the international banking institutions of JP Morgan, Santander, and BBVA. In this sense, the guarantee scheme will allow Colombian businesses to access financing, with terms of up to 36 months, following the ceilings according to the undertaking sizes: (i) up to COP 3 000 million (approx. USD 940 291) for SMEs; and (ii) up to COP 5 000 million (approx. USD 1.6 million) for large companies. No restrictions in terms of the economic sector have been announced.
In this context, MIGA’s Vicepresident Hiroshi Matano highlighted that “MIGA's support to Bancóldex will help strengthen the resilience of MSMEs in the face of the global pandemic”.
MIGA is a World Bank’s institution that promotes investment in developing countries, providing guarantees that help investors gain access to private sources of financing with better financial conditions. It only supports investments that comply with high social and environmental standards.
A state act in the GTA database is assessed solely in terms of the extent to which its implementation affects foreign commercial interests. On this metric, the investment support granted here is discriminatory.