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Easing of Minimum Reserve Requirements for Institutions Financing SMEs

January 3, 2020. The BCRA will endorse the measure announced by the Executive Branch to help companies meet their investment and working capital needs, including the payment of the increased salary to private-sector employees. To this end, minimum reserve requirements will be eased for financial institutions granting loans to SMEs at a 40% annual rate, which stands substantially below the current rates prevailing in the market.

This measure will enable institutions to have greater funds available in pesos and so channel up to 60% of their loans to SMEs and at better financial conditions.

This measure falls within the scope of the targets mentioned recently that seek to “boost financing to the private sector in reply to the needs of working capital derived from Argentina’s emergency condition”.

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