Measures Taken by the BCRA to Benefit Productive Sectors

The BCRA has approved a series of regulations for the benefit of provincial productive sectors affected by a drop in activity prompted by the COVID-19 pandemic. These actions are part of the BCRA’s objective of promoting a balanced and sustained recovery across Argentina.

New Credit Line for MSMEs’ Productive Investment and Special Treatment for Key Provincial Sectors

The BCRA implemented a New Credit Line for MSMEs’ Productive Investment mainly channeled to the industrial and services sector for the 2021-2022 period.

This line, which shall be offered by all financial institutions, will amount to about ARS450,000 million by March 31, 2022. Leading banks must lend out 7.5% of their stock of private deposits. It involves two types of financing: loans for investment in capital goods at a 30% annual rate for an average minimum term of 2 years and loans for working capital at a 35% annual rate.

The latter provides for a special treatment to benefit key provincial sectors:

• Special access for all micro- and small-sized agricultural companies. There are two types of credit lines: for working capital and for investment goods. The primary agricultural sector was excluded from former credit lines. The new one is channeled to meat and/or milk producers for fattening, pastures, breeding females, genetics, sheds, national vehicles, fences and watering places, among purposes.

• Special access to MSMEs and non-MSMEs producing pork and poultry meat. All types of companies, regardless of their size, may access the Line for investment in Capital Goods at a 30% rate.

• Special access for gastronomy, accommodation services, culture and leisure. Suppliers undertaking any of these activities may access the Working Capital Line at a 35% rate with a six-month grace period.

Other BCRA Measures with an Impact on the Agricultural Sector

The term for settling the proceeds from sorghum and barley exports was extended from 15 to 30 days. This measure is a response to a request from producers and exporters, who claim that pandemic have been blocking shipments, especially to China.

October 2, 2021..