Companies Have Access to More Credit at Lower Interest Rates

MSMEs benefited from a new subsidized credit line at a 24% interest rate.

SUBSIDIZED CREDIT LINE AT A 24% INTEREST RATE FOR MSMES

Loans approved and in the process of approval	ARS193,007.5 million
Loans disbursed	ARS148,453.7 million
Number of companies	95,263 MSMES
FOGAR loan guarantees availability	ARS92,046 million

The credit offer to MSMES stipulated by the BCRA has been increasing since the beginning of the preventive and compulsory social isolation established by the National Government. Financial institutions are expected to place the whole credit line.

As from March 20, the financial system extended its credit lines to all companies, regardless of their size, for ARS188,500, which meant a 20.4% increase and an 83.8% rise against last year.

BUSINESS CREDIT LINES FOR COMPANIES

Net growth since March 20, 2020	20.4%
Growth change since March 20	ARS148,453.7 million
Y.o.y. growth change	83.8%

The private sector also benefited from a significant fall—about 50%—of the financing cost.

SIGNIFICANT FALL OF THE FINANCING COST

Interest rates to companies	A year ago	30 days ago	Current	Annual fall
Overdrafts	71%	45%	36%	49%
Unsecured promissory notes	60%	33.7%	28.2%	53%
Discounted documents	54%	36%	25%	54%

The BCRA has been developing instruments to improve the companies’ access to bank financing in more favorable conditions.

May 8, 2020.