WASHINGTON, Jan 16 (Reuters) - The Inter-American Development Bank on Friday said it will create a $150 million fund to support trade financing and investment loans to sugar and bioenergy firms, and exporters in Brazil, Mexico and Central America affected by the global credit crunch.
In a statement, the Latin America regional lender said it could expand the facility to $250 million, depending on how market conditions fared.
"The facility will offer different types of loans, although it will place an emphasis on short-term pre-export and inventory financing for sugar and biofuels producers and exporters at a time when lending for the agricultural sector is drying up due to the global financial crisis," the IADB said. (Reporting by Lesley Wroughton; Editing by James Dalgleish)