Ecuador: Corporacion Financiera Nacional COVID-19 Credit Line Project (AIIB-000435)

Countries
  • Ecuador
Where the impacts of the investment may be experienced.
Financial Institutions
  • Asian Infrastructure Investment Bank (AIIB)
  • World Bank (WB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Bank Risk Rating
FI
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Borrower
Corporación Financiera Nacional (CFN)
The holder of the loan, grant, or other investment.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 50.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Primary Source

Original disclosure @ AIIB website

Updated in EWS Oct 12, 2020


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Project Description

According to the AIIB website, the objective of this project is to promote access to finance and address the liquidity constraints faced by private micro, small and medium enterprises (MSMEs) in response to the COVID-19 crisis in Ecuador.

The Project is proposed to be supported under AIIB's COVID-19 Crisis Recovery Facility (the Facility) and will be co-financed with the World Bank (IBRD). The Project aims at developing and improving financial products to promote access to finance for productive purposes for MSMEs and strengthening the institutional capacity of the Borrower, Corporacion Financiera Nacional B.P., in the context of the COVID-19 crisis.

The Project may have the following 4 components:

Component 1 - Strengthening the institutional capacity of Corporacion Financiera Nacional B.P..

Component 2 - Development and Improvement of Financial Products to Promote Access to Finance for MSMEs.

Component 3 - Credit Line Intermediated by Corporacion Financiera Nacional B.P. to Participating Financial Intermediaries (PFIs) for on-lending to MSMEs.

Component 4 - Project Management.

The World Bank is the lead co-financier. The Project's environmental and social risks and impacts have been assessed in accordance with the World Bank's Environmental and Social Framework (ESF). Under World Bank's ESF, the Project's environmental and social risks have been categorized as Moderate (equivalent to Category FI if AIIB's ESP were applicable.

AIIB will co-finance Component 2(b) "Capitalization of National Guarantee Fund (NGF) for special COVID-19 program" and Component 3. Under the Project, AIIB will provide through the Borrower, short-term liquidity financing for MSMEs in the form of partial credit guarantees and/or credit lines to mitigate the impacts of the economic crisis induced by the COVID-19 pandemic.

 

Investment Description
  • Asian Infrastructure Investment Bank (AIIB)
  • World Bank (WB)

The Project is proposed to be supported under AIIB's COVID-19 Crisis Recovery Facility (the Facility) and will be co-financed with the World Bank (IBRD) (the Lead Co-financier).

Private Actors
Contact Information

AIIB

Gabriel Alfredo Giacobone

Infrastructure Sector Economist

gabriel.giacobone@aiib.org

 

Francisco-José Fortuny

Senior Investment Operations Specialist

fj.fortuny@aiib.org

 

WORLD BANK

Daniel Ortiz del Salto

Financial Sector Specialist

dortizdelsalto@worldbank.org

 

ACCESS TO INFORMATION

You can submit an information request for project information at: https://www.aiib.org/en/contact/information-request/index.html

ACCOUNTABILITY MECHANISM OF AIIB

The AIIB has established the Accountability Mechanism for Project-Affected People (PPM). The PPM provides Òan opportunity for an independent and impartial review of submissions from Project-affected people who believe they have been or are likely to be adversely affected by AIIBÕs failure to implement the ESP in situations when their concerns cannot be addressed satisfactorily through Project level GRMs or AIIB Management processes.Ó Two or more project-affected people can file a complaint. Under the current AIIB policy, when the bank co-finances a project with another development bank, it may apply the other bank's standards. You can refer to the Project Summary Information document to find out which standards apply. You can learn more about the PPM and how to file a complaint at: https://www.aiib.org/en/about-aiib/who-we-are/project-affected-peoples-mechanism/how-we-assist-you/index.html

The complaint submission form can be accessed in Arabic, Bahasa Indonesia, Bengali, Chinese, English, Tagalog, Hindi, Nepali, Russian, Turkish, or Urdu. The submission form can be found at: https://www.aiib.org/en/about-aiib/who-we-are/project-affected-peoples-mechanism/submission/index.html