The Inter-American Development Bank (IDB) has approved $203.2 million in financing to help small and medium-sized businesses in Ecuador increase investment and strengthen their competitiveness through the Corporación Financiera Nacional, the bank said in a statement. The package includes a $190 million IDB loan and three separate funding streams from the Green Climate Fund and the IDB-managed Amazon Bioeconomy Fund: a $10 million loan, a $1.7 million investment grant, and a $1.5 million technical cooperation grant. More than 3,200 small and medium enterprises nationwide will directly benefit, including 200 in the Amazon region.
The program takes a territorial approach, targeting businesses in metropolitan areas, intermediate provinces, and the eastern Amazon provinces. For Amazon-based enterprises, the focus is on building capacity to finance bioeconomy businesses—economic activities that use biodiversity sustainably while generating income.
CFN will use second-tier credit lines to channel program funds to eligible commercial banks at market rates, which will then provide long-term loans to small and medium enterprises for productive investment projects. The entity will also run a pilot financing scheme for Amazon SMEs, offering incentives to commercial banks and technical help to strengthen their ability to manage bioeconomy investments.
This program is part of Amazonia Forever, an IDB Group initiative for sustainable development in the region that works on forest and climate conservation while improving quality of life through economic alternatives. The $190 million IDB loan has a 25-year repayment term, a 5.5-year grace period, and an interest rate based on SOFR. The $10 million Green Climate Fund loan runs for 20 years with a 5.5-year grace period and carries a 0.75% annual interest rate plus service and commitment fees.
