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SMEs: launch lines to finance exports

November 5, 2018 - By Joseph Taylor

The Ministry of Production presented two lines of financing to promote the development of export SMEs. One will be up to US $ 200,000 at one year with rates of 5.5% that will be granted by 12 local banks, and another for up to US $ 100,000 for the same pazo and 6% rate through BICE.

The announcement is part of the Argentina Exporta program, which aims to quadruple the companies with presence in international markets by 2030.

The objective of Argentina Exports is to triple exports in 2030, to reach US $ 200,000 million; US $ 140,000 million in goods and US $ 60,000 million in services, and go from 9,500 exporting companies to 40,000 in the same period.

The first of the lines will join 12 private and public banks with national coverage, and 3,200 branches in the country, such as Banco Patagonia, Bank of the province of Córdoba (Bancor), Bank of the province of Buenos Aires, Supervielle, Credicoop, Macro , BBVA Francés, ICBC, Galicia, City Bank, Nation and HSBC.

And the second, with a focus on financial inclusion, will be available at BICE with guarantees from the Argentine Guarantee Fund (Fogar).

“Currently the companies that export generate 1.4 million jobs, close to 20% of formal employment and up to 3 times more than those that do not export, and have 20% higher salaries,” said the Ministry.

Between 2008 and 2014, 95% of the companies that stopped exporting were SMEs, which could not sell 1,400 products abroad. The country has agreements with less than 10% of the world market and is among the 15 most closed economies in the world, according to the statement.

Today, more than 75% of the sectors have at least one exporter; and from this program a specific work will be done for each sector: develop export niches, improve the competitiveness of industries such as automotive, Services Based on Knowledge (SBC) and Tourism and promote agriculture, livestock and fisheries, energy, mining and oil.

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