December 17, 2021
IDB Invest has provided financing of up to $50 million to Banco Aliado S.A. The deal, with a term of up to 10 years, will support small and medium-sized enterprises (SMEs) in Panama, including those owned or led by women.
The transaction seeks to improve Banco Aliado’s capitalization level and provide long-term financing required to finance SMEs in Panama. It will also help maintain economic activity in the medium term, thus helping to mitigate the longer-term effects of the crisis generated by COVID-19.
In the country, 96.4% of companies are small and medium-sized, with a low level of productivity, largely due to their difficulty in accessing credit. On the other hand, MSMEs led or owned by women represent around 44% of all MSMEs in the country, but only 4% have access to financial services to meet their working capital needs.
IDB Invest will also support Banco Aliado with technical advisory services to develop the business unit for SMEs, within the current structure of the commercial area, to provide adequate service to its clients and create products tailored to their needs.
This deal is expected to contribute to three United Nations Sustainable Development Goals (SDGs): Gender Equality (SDG 5), Decent Work and Economic Growth (SDG 8) and Partnerships to Achieve the Goals (SDG 17) .
This project shows IDB Invest’s commitment to reducing financing gaps for SMEs and women in the region, in order to achieve sustainable and inclusive economic growth.