ANNOUNCEMENT 06 Oct 2016

In October 2016, the government of Argentina announced a change in private-sector financial support.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE



Banco Provincia Noticias (2016)
https://www.bancoprovincia.com.ar/noticias/nota/30


Inception date: 06 Oct 2016 | Removal date: open ended
Still in force

State loan

On 6 October 2016, the Argentine Banco Provincia launched three new credit lines. These credit lines are designatedto help Argentiniansoperating in the sector of agriculture to finance their purchasing of agricultural machinery as well as their production of potatoes, corn and sunflower. The total sum of resources dedicated to these credit lines is 575 million of Pesos (USD 38,308,277).
 
The denoted credit lines are the following :

  • The first credit line is designated to financing the purchase of machinery, equipment as well as other agricultural implements (technologies).This credit line arises from the agreement signed between Banco Provincia and Cámara Argentina de Fabricantes de Maquinaria Agricola - CAFMA (approximate English translation :Argentina Chamber of Manufacturers of Agricultural Machinery). The maximum amount awarded under this credit line is 5,000,000 Argentine Pesos (USD 329,512) for 36 months, a 6 months grace period and at a nominal annual rate of 14%. Only machinery produced in Argentina is eligible for this credit line.
  • The second credit line is designated for the financing of the working capital related with the production of potato. This maximum amount awarded under this credit line is 2,500,000 Argentine Pesos (USD 164,728) for 270 days and at an approximate rate of 20%.
  • The third credit line is designated for the financing of the working capital related with the production of corn and sunflowers. The maximum amount awarded under this credit line is 1,000,000 Argentine Pesos (USD 65,891) for 270 days and at an approximate rate of 20%.

A state measure in the GTA database is assessed solely in terms of the extent to which its implementation affects the extent of discrimination against foreign commercial interests. On this metric, the state aid proposed here is discriminatory.

AFFECTED SECTORS