ANNOUNCEMENT 06 Oct 2014In October 2014, the government of Argentina announced a change in private-sector financial support.
NUMBER OF INTERVENTIONS
Fund for Transformation and Growth (2014) " El Gobierno ampli? los montos para Maquinaria Industrial".
On 6 October 2014, theFund for Transformation and Growth, expanded its lines of credit for the purchase of machinery and equipment used by manufacturers.
The maximum amount of credit extended for such purposes was increased from USD 300,000 to USD 600,000 according to the fund. However, the maximum financing amount was increased from USD 450,000 to USD 2 million for the purchase of machinery produced in Mendoza.
In general, the repayment period for these loans is up to five years, with no grace period. Nevertheless, if more than 80% of the employed machinery is manufactured in Mendoza, the repayment period can be up to 7 years and 6 months.
All loans enjoy the same favorable interest rate set to be half the nominal rate applied by the Banco de la Nacion Argentina at the time of loan origination.
The GTA includes state guarantees and other financial incentives thatare likely to affect the restructuring and performance of firms facinginternational competition, whether from imports, in export markets, andfrom foreign subsidiaries.