The Inter-American Development Bank (IDB) has been in Guyana explaining how it can help entrepreneurs to access finance for smaller scale trade and investment opportunities through a variety of mechanisms.

Guarantees for letters of credit (L/Cs) feature in the IDB's armoury of support measures to help Latin American and Caribbean businesses and the financial institutions that support them.

Agencies

Measures for businesses and financial institutions are delivered through IDB group affiliates, the Inter-American Investment Corporation (IIC), the Multilateral Investment Fund (MIF) and the Private Sector Department (PSD).

Financing tools include direct loans, direct equity or quasi-equity investments, and lines of credit to local financial intermediaries for on-lending in the form of smaller loans.

Debt and equity

The IDB may also participate in joint lending programmes with local financial institutions, and invest in local and regional private equity funds.

The bank also provides guarantees for and investments in capital market offerings.

L/C measures

Guarantees for L/Cs are delivered through the PSD and support export sales.

The PSD has arrangements with local banks issuing L/Cs and the IDB may guarantee up to 90 per cent of the credit's value.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.