New Credit Line for MSMEs with No Access to Credit

MSMEs with no access to credit may apply for a loan at a 24% subsidized interest rate in accordance with a BCRA’s regulation, effective as from next week.

According to the financial system database, there are about 200,000 MSMEs with no access to bank financing.

The BCRA launched a special credit line for ARS22,000 million with basic requirements so that MSMEs can borrow their first loan. Banks will not refuse to give credit to those MSMEs with FOGAR loan guarantees.

The credit line will be funded by reducing financial institutions’ stock of LELIQs and minimum reserve requirements. The banks that fail to meet the quota on loans will be penalized, having less chance to underwrite LELIQ bills.

May 7, 2020.