There will be another financial line for companies that did not access the 24% loan

Micro, small and medium-sized enterprises (MSMEs) that did not access the loan at a subsidized rate of 24 percent will have a new opportunity starting next week, as announced today by the Central Bank of the Argentine Republic (BCRA).

At the end of March, the national government launched a line of credits for MSMEs at a subsidized rate so that companies could survive the quarantine that it had ordered. But a significant number of companies could not access due to the requirements of the financial system.

It is a new line that will be operational from next Monday, for which it allocated 22 billion pesos with less demands in relation to the previous one.

“The Central Bank authorized a special line for $ 22,000 million pesos with minimum requirements so that they can take their first loan and for the MSMEs that obtain the Fogar guarantee, the banks cannot deny it,” said the monetary authority.

According to the BCRA, based on data from the Argentine financial system, there are 200,000 MSMEs that do not have bank financing.

For its part, in a recent report, the Argentine Industrial Union (UIA) assured that 80 percent of the companies could not access the line of credit at a subsidized rate.

Covid-19: 80% of industries were unable to access credit and 75% had declined checks

Funding of the line will be with a combination of Leliq reduction and reserve requirement release, as well as a penalty for banks that do not meet the quotas from the additional reduction of the possibility of subscribing to Leliq.