Chile to Bolster Productivity and Sustainable Development with IDB Support

The Inter-American Development Bank (IDB) approved a line of credit for investment projects of up to 1,000 million dollars in Chile, whose objective is to increase productivity and promote sustainable development in the finance, climate action and internationalization sectors.

The first individual operation, under this line of credit, of 400 million dollars will be used to contribute to improving the productivity of micro, small and medium-sized enterprises (MSMEs) in the country (over 170,000 MSMEs will be benefitted). The financing will have a 25-year amortization term, a 5.5-year grace period, and an interest rate based on Secured Overnight Financing Rate (SOFR). Through this transaction it is intended to facilitate companies access to productive financing, promote the digital and green transition, strengthen capabilities and human capital for innovation, and promote internationalization to increase productivity. Moreover, it seeks to promote gender parity in the productive matrix and encourage the development of new sectors that contribute to environmental sustainability and the fight against climate change.