ANNOUNCEMENT 08 Jun 2010In June 2010, the government of Argentina announced a change in private-sector financial support.
NUMBER OF INTERVENTIONS
On June 8, 2010 the Government of Argentina launched a soft-loans program, the 'Bicentenary Productive Financing Program' ('Programa de Financiamiento Productivo del Bicentenario'), of circa USD 2000 millions (8000 millions of Argentinean pesos), aimed at boosting productive investments in 'strategic sectors'.
The funds, which will come from Argentine Central Bank's reserves, will be channelled through the granting of five years-loans at a subsidized interest rate of 9.9% (the current standard interest rate in the domestic market for similar loans is between 14 and 20%). The assignment of the loans will be administered by a public 'Credit Assessment Unit' (composed by representatives of diverse branches of the Government) and the private banks in charge of channelling the funds. The criteria that will be used in granting the credits are still unclear.
The program is explicitly aimed at increasing domestic supply, contributing to reduce the country's dependence on imported inputs, and stimulating exports in 'strategic sectors', and will be in force until December 2010.