Banco Industrial executes Kexim loan
May 20, 2019 |
Guatemalan lender starts disbursing $30m to fund machinery imports for the local textiles and apparel industry
Guatemala's Banco Industrial has started to disburse $30m in financing from the Korea Eximbank, or Kexim, to fund imports of machinery from the Asian nation for the local textiles and apparel industry, LatinFinance has heard.
"The $30m is available for our clients to draw on for trade operations, including import and exports between South Korea and Guatemala," said a loan officer at Banco Industrial.
Kexim granted the loan last year to help South Korean firms that operate factories in Guatemala import machinery at a lower cost and increase production for growing exports to the United States, a key market for manufacturers like Sae-A and Hansae.
Sae-A, for example, could invest $200m to build a new yarn thread factory in Guatemala to meet rising demand for exports to the US market.
The loan officer, however, said not all companies can qualify for the financing and added that loan approvals depend on a borrower's ability to put up certain guarantees, which can range from mortgages to the machinery itself.
"Not all clients can show that they have the capacity to repay the loan," he said. "But if they apply and have the right requirements, they can get financing."
Startex, a clothing manufacturer with a factory outside Guatemala City, was denied a Kexim-backed loan from Banco Industrial and has approached US lenders to help fund a $50m expansion plan.