ANNOUNCEMENT 20 Jan 2021

In January 2021, the Ministry of Production of Peru approved the operating rules of the “Procompite” programme that allows local and regional governments to finance SMEs.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

El Peruano. Official Gazette. “Decreto Supremo Nº 001-2021-PRODUCE, Decreto Supremo que apruebe el Reglamento de la Ley Nº 29337, Ley que establece disposiciones para apoyar la competitividad productiva”. 20/01/2021. Available at: https://busquedas.elperuano.pe/download/url/decreto-supremo-que-aprueba-el-reglamento-de-la-ley-n-29337-decreto-supremo-n-001-2021-produce-1921205-2

Ministerio de la Producción. Ministry of Production. Press release. “Produce: Más de 2 millones de mype podrán recibir cofinanciamiento para planes de negocios hasta por S/ 1 millón”. 20/01/2021. Available at: https://www.gob.pe/institucion/produce/noticias/325539-produce-mas-de-2-millones-de-mype-podran-recibir-cofinanciamiento-para-planes-de-negocios-hasta-por-s-1-millon?platform=hootsuite

Ministerio de Economía y Finanzas. Ministry of Economy and Finance. Approved National Budget 2021. Available at: https://www.mef.gob.pe/es/?option=com_content&language=es-ES&Itemid=101158&lang=es-ES&view=article&id=2327

Inception date: 21 Jan 2021 | Removal date: open ended

State loan

On 20 January 2021, the Ministry of Production of Peru approved Supreme Decree Nº 001-2021 that contains the operating rules of the “Procompite” programme, allowing local and regional governments to co-finance businesses plans from SMEs.

Procompite is a strategy that supports SMEs by enabling sub-national governments to use up to 10% of their budget destined to investment projects for this purpose. Following calculations from the approved national budget for the fiscal year 2021 (available in the website of the Ministry of Economy and Finance), the maximum amount of support throughout the country reaches PEN 745 million (approx. USD 206 million).

In this context, the Minister of Production, José Chicoma, highlighted that the measure will support over 2 millions of SMEs in three categories:

  • Category A with financing options from PEN 80 000 (approx. USD 22 124) to PEN 160 000 (approx. USD 44 248), with the condition of having at least 10 employees;
  • Category B with financing options from PEN 80 000 (approx. USD 22 124) to PEN 350 000 (approx. USD 96 792), with the conditions of being operational for at least one year; and
  • Category C with financing options up to PEN 1 million (approx. USD 276 549), with the conditions of having at least 20 employees and one year of operation. 

No restrictions in terms of the economic sector were announced.

A state act in the GTA database is assessed solely in terms of the extent to which its implementation affects foreign commercial interests. On this metric, the support granted here is discriminatory.

AFFECTED SECTORS

 
N/A

AFFECTED PRODUCTS

 
N/A