Chile

According to the Central Bank, Chilean banks have reduced the credits to SMEs by 74%, they are charging higher rates, requiring better guarantees and reducing credit terms

Chile has announced fresh measures to inject liquidity into its banking system and guarantee SMEs and exporters have access to credit amid the global financial turmoil.

The financial crisis in the US will increase premium rates on credit insurance in Chile at least 10%

Chilean ratings agency Humphreys has assigned an A- rating to local factoring firm Factorline's CLP31.5bn (US$59.3m) worth of 10-year bonds

On October 17 the board of the International Finance Corporation (IFC) will decide on a possible five-year, US$15m credit line for Chilean factoring firm Factorline for on-lending to local SMEs, according to IFC.

Fitch and Humphreys have assigned ratings to Chilean factoring company Factorline's sixth line of commercial papers worth pesos15bn (US$30.6m).

The Inter-American Investment Corporation ( IIC ) has approved increasing its loan to Chilean factoring company Eurocapital to US$5m from US$3m, IIC announced.

Chilean factoring firm Factorline booked a pesos 4.02bn (US$8.61m) net profit in 2007, up 11.3% compared to the previous year.

Corfo is looking to award around US$1bn in funding for SME loans this year and in 2008.

Fogape was due to be auctioned on 25 September for pesos 138bn in small business loan guarantees.