The Central Bank of the Argentine Republic will accompany the measure announced by the National Executive Branch to make it easier for companies to meet their investment and working capital needs, including the payment of the salary increase for private sector workers. To this end, reserve requirements will be relaxed, exclusively for financial institutions that grant financing to Small and Medium-sized Enterprises, at an interest rate of 40% per annum, which is significantly below the levels currently observed.
This measure will free up funds that will increase the credit in pesos available to small and medium-sized companies and in better financial conditions by up to 60%.
This measure is part of its recently announced objectives in the sense of “stimulating the supply of credit to the private sector, meeting the working capital needs derived from the state of emergency situation in which the country finds itself”.
