ANNOUNCEMENT 30 May 2018
The Argentine Government together with the Argentine Foreign Trade and Investment Bank (i.e. BICE by its Spanish acronym), announced the creation of a credit line to finance investments in energy efficiency equipment.
NUMBER OF INTERVENTIONS
Foreign Trade and Investment Bank. Banco de Inversión y Comercio Exterior. Novedades. "Eficiencia energética: más financiamiento para que las empresas ahorre energía y reduzcan costos" Available at: https://www.bice.com.ar/novedades/eficiencia-energetica-mas-financiamiento-para-que-las-empresas-ahorren-energia-y-reduzcan-costos/
Ministry of Treasury. Ministerio de Hacienda. Energía. "Lanzamiento de la línea de crédito Financiamiento para Inversión en Eficiencia Energética (FIEE)" Available at: https://www.argentina.gob.ar/noticias/lanzamiento-de-la-linea-de-credito-financiamiento-para-inversion-en-eficiencia-energetica
On 30 May 2018, the Argentine Ministries of Energy and Mining, Home Affairs and Production, together with the BICE announced the launch of the FIEE credit line to support energy efficiency projects carried out by Argentine businesses.
The objective of the new credit line is to finance the purchase of energy efficient equipment like new engines, variable speed drives, compressors, pumps, boilers and luminaires. In this sense, local companies will be able to apply for loans ranging from ARS 500,000 (USD 20,000) to ARS 20.000.000 (circa USD 803,000) to finance up to 80% of the investments.
The loans have a repayment term of up to 5 years, including one grace year, and a variable interest rate (badlar + 5%) with a ceiling of 29%. However, it will receive a bonification during the first three years setting the maximum interest rate at 21%.
During the announcement of the FIEE credit line made by the Argentine Ministries of Energy and Mining, Home Affairs and Production, together with the BICE on 30 May 2018, the national government also stated that it would match the contributions made by the provincial governments to bonify the interest rate up to a maximum of a 4%. In this sense, the maximum interest rate to be pay by local companies could be reduced from 29% to 21%.