In Bolivia, Proparco is contributing to scaling up loans allocated to agricultural SMEs by Banco Ganadero. The financing allocated will have a longer maturity than on the market and will promote agricultural development in the country.
Banco Ganadero was set up in 1993 and is a medium-sized Bolivian bank specialized in corporate financing. Financing agriculture is the core activity of Banco Ganadero which, prior to being a bank, was an investment bank dedicated to livestock farming. The bank is strategically located in a major rural region in Bolivia, Santa Cruz. The main agriculture segments financed are livestock farming, the oilseed sector and sugar-cane farming. Banco Ganadero’s majority shareholder is the Monasterio family.
Proparco has allocated a USD 10m senior loan to the Bolivian bank Banco Ganadero to support the development of its lending activities to small and medium-sized enterprises in the agricultural sector. In the context of this operation, Proparco’s first in Bolivia, Banco Ganadero has pledged to develop an environmental and social risk management system in line with the requirements of international donors. Proparco’s credit line will be earmarked to finance agricultural enterprises and agribusinesses. It will allow the bank to better meet the needs of these enterprises, by offering them financing with longer maturities than on the market.
This operation will contribute to the development of agriculture and agro-industry – key economic sectors which employ 30% of the working population. It will support the development of the agricultural supply chain and increase incomes for populations who are dependent on agriculture and agro-industry.