ANNOUNCEMENT 26 Jul 2018
The Argentine Foreign Trade and Investment Bank (BICE by its Spanish acronym) announced the creation of a new credit line to purchase locally-made trucks and buses.
NUMBER OF INTERVENTIONS
Foreign Trade and Investment Bank of Argentina. Banco de Inversión y Comercio Exterior. Novedades. "El Gobierno apuntala la producción con financiamiento para la compra de camiones y colectivos" Available at: https://www.bice.com.ar/es/novedades/colectivos/
On 26 July 2018, the Foreign Trade and Investment Bank of Argentina announced a new credit line for the purchase of locally-produced trucks, trailers, road trains and buses. The offered resources only apply to locally-made trucks and buses, therefore it can be understood that this measure involves a localisation incentive as it encourages the purchase and leasing of goods nationally produced.
The credit line is divided into two categories summing up ARS 2,000 million (USD 73 million at the time of the measure).
The resources allocated to the credit line for the purchase of trucks, trailers and road trains amount ARS 500 million (over USD 18 million). Companies can apply for up to ARS 10 million (circa USD 365,000).
As for the purchase of buses, the total resources allocated have been set at Ars 1,500 million (USD 54.7 million) limited to ARS 20 million (USD 730,000) per company.
In both cases, companies can use the resources to finance up to 85% of the value for purchases and 100% of the value for leasings.
In addition to the above-mentioned, the Ministry of Production of Argentina will subsidize 4% of the interest rate in the case of the credit lines for trucks and 2% in the case of buses. This action will sum up to a bonification of 5% and 2% respectively made by the producers so that those resources will enjoy a final interest rate of 18% in the case of purchases and 21% in the case of leasings instead of an interest rate range between 27% and 30% for trucks and 22% and 25% for buses.