The Inter-American Development Bank (IDB) approved a $ 93.8 million loan to support Ecuador in the financial sustainability of micro and small companies (MIPE) affected by the health emergency.
The project will help micro and small companies overcome temporary liquidity problems and be able to continue their operations with credit products and / or guarantees to obtain working capital financing, an IDB statement said.
The loan has a repayment term of 25 years , a grace period of five and a half years and an interest rate based on LIBOR .
In addition, it is expected to increase the number of short-term loans to micro and small companies led by women in the portfolio of the National Corporation for Popular and Solidarity Finance (Conafips).
The program will finance direct subloans to 16,038 MIPE members of the Credit and Savings Cooperative, through which the resources will be channeled. It is also estimated that it will benefit 12,691 MIPEs through Conafips guarantees for short-term credits that will be granted through the Organizations of the Popular and Solidarity Financial System, mainly Savings and Credit Cooperatives.
According to the IDB, the main problem that afflicts MSMEs (Micro, Small and Medium-sized Enterprises) is the lack of liquidity to sustain business and employment due to a reduction in their operating income and a greater delay in their collections.
According to a calculation based on data from the Superintendency of Companies, 50% of companies in Ecuador would resist less than 37 days without sales, and 75% less than 70 days . The sectors most impacted would be those associated with agriculture, accommodation and catering, and administrative service activities. (I)