The Banco Popular will make the sum available for MSMEs that lack the collateral needed for a credit line.
Andrey Monge writes in Elfinancierocr.com: "The funds are part of the institution's net income, and will be assigned through an auction of guarantees, to be executed on February 20th by the Fund for the Development of Micro, Small and Medium Enterprises (Fodemipyme)"
Costa Rica's Banco Popular is in negotiations to acquire or merge with the pension-fund management company of the state-owned insurance monopoly, Instituto Nacional de Seguros (INS). If it comes off, the deal will be one of the biggest ever in the pensions sector.
No information is available on the progress of the talks, which are being held behind closed doors.
Several banks are focusing on services to help put small and medium companies in the international market.
Bac San Jose Bank revealed a few weeks ago a new product which they will offer to the companies. The factoring service is a method by which the bank helps businesses to position themselves in foreign markets with the process of accounts receivable.
The contract includes hiring companies that offer design services, labor, materials and equipment for the construction of electricity networks and structured cabling for voice and data in all offices of Banco Popular (consumer demand).
Using standardized issuances, the Costa Rican entity intends to raise funds in the financial markets of Nicaragua, El Salvador and Mexico.
The idea "... is to raise funds by issuing securities on the stock exchanges of these countries with the aim being that investors can obtain the funds and channel them into placing loans here," noted an article in Prensalibrecr.com.
Driven by fierce competition, public and private banks are carrying out aggressive expansion plans this year.
Seven banks and the Mutual Group have announced that they will open at least 84 branch offices or agencies.
The most ambitious plans are those of the Banco de Costa Rica and Banco Popular, each of which is planning to end the year with 20 new branches.