The proposed investment in Banco Bolivariano (“Bolivariano” or “the Bank”), an existing IFC client and Ecuador’s (the “Country”) sixth largest commercial bank, consists of a senior loan of up to US$50 million to support the growth of the Bank’s small and medium-sized enterprises (“SMEs”) loan portfolio.
Ecuadorian SME financing gap is estimated at US$15.73 billion, or 16% of GDP. Despite the significant role played by SMEs in the Ecuadorian economy as it produces 25% of GDP, the amount of lending to these companies accounts for only 3.6% of GDP, and 31% of SMEs report being fully or partially credit constrained. IFC anticipates that the project will increase access to SME finance and contribute to narrowing the financing gap for SMEs in Ecuador. IFC's loan to Bolivariano will allow the Bank to support its SME clients with longer-tenor loans.
There is often limited information publicly available about what development banks are funding through financial intermediaries. In 2021, the Early Warning System partnered with Oxfam International to incorporate information on high-risk projects being funded by financial intermediaries receiving funding from the International Finance Corporation (IFC) and the Dutch Development Bank (FMO).
The information listed below describes the relationship between the different private actors linked to high-risk sectors and subprojects of IFC and FMO's financial intermediary investments and/or the financial intermediary's parent companies made from 2017 through 2020, including any associated ring fences.
The database, however, does not explicitly or implicitly imply that IFC or FMO have material exposure to or are contractually or legally accountable to the sub-projects financed by their financial intermediaries or the financial intermediary's parent companies. It only shows a seemingly financial relationship among the different private actors, the financial intermediaries, and IFC or FMO.
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ACCOUNTABILITY MECHANISM OF IFC
The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/