The Argentine Government creates a guarantee fund for SMEs for 425 million euros
The fund is expected to facilitate access to working capital loans for companies
The Government of Argentina has created a guarantee fund for SMEs for 30,000 million Argentine pesos, equivalent to 425 million euros, to facilitate access to working capital loans for companies.
This has been announced through Decree 326 / 2,020 published in the country’s Official Gazette. Specifically, the Argentine Administration has commissioned the Argentine Guarantee Fund (Fogar) to set up a Specific Affectation Fund.
The guarantees will have the objective of ensuring the payment of loans for working capital, including payments of wages, contributions and employer contributions, in addition to the coverage of deferred checks granted by entities.
The decree specifies that the Argentine Guarantee Fund will work together with financial entities authorized by the country’s Central Bank and non-financial entities that develop financing tools, in support of what reciprocal guarantee companies, national, provincial or regional funds issue timely agreements.
On the other hand, the Ministry of Productive Development will determine the destination of the funds that were not committed due to guarantees granted, being empowered to decide to transfer them to trust funds that operate under its order and that promote the financing of the productive sector.
Source: dpa
