Banks Allowed to Invest in SME Mutual Funds

Financial institutions are now allowed to invest in mutual funds for small- and medium-sized enterprises (SMEs). This measure taken by the BCRA seeks to boost the financing of SMEs by way of direct credit lines and through the capital market as well.

The Board of the BCRA has empowered financial institutions to take part in mutual funds under the “Special Regime for the Creation of SME Mutual Funds” authorized by the National Securities Commission (Comisión Nacional de Valores, CNV).

The investment in each of these funds may not exceed 15% of the total amount of the issue and 2% of the minimum regulatory capital (responsabilidad patrimonial computable, RPC).

The BCRA has been conducting various actions to encourage companies’ access to financing, such as the Credit Line for Productive Investment (Línea de Crédito para la Inversión Productiva, LCIP) or invoices accepted by the payor.

The BCRA has adopted a set of measures, which are published in Communications A7234 and A7341. They are aimed at fostering the financing of infrastructure and the real economy through the capital market by enabling financial institutions to hold unit shares of closed-end mutual funds with public offering authorized by the CNV.

Financial institutions are now authorized to take part in the Special Regime for the Creation of SME Mutual Funds.

December 30, 2021.