ANNOUNCEMENT 16 Sep 2015

In September 2015, the government of Argentina announced a change in private-sector financial support.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE



Fund for Transformation and Growth (2014) El Gobierno ampli? los montos en l?neas de cr?dito.http://www.ftyc.gob.ar/noticias/2014/09/16/el-gobierno-amplio-los-montos-en-lineas-de-credito.

http://invest.mendoza.gov.ar/key-sectors/agriculture/


Inception date: 16 Sep 2015 | Removal date: open ended
Still in force

State loan

On 16 September 2014, the authorities of Medoza (Argentina) took the decision to increase the amounts of the credit lines for the agriculture of the following three specific products namely alfalfa, potato seeds and combustibles for frosts (fuel frosts). 
 
With regards to alfalfa, the maximum financing per hectare per one single applicant increased from 5,000 Argentinian pesos (approximately USD 500) to 8,500 Argentinian pesos (approximately USD 935). Therefore, increasing the maximal sum of financing from 300, 000 Argentinian pesos (approximately 33,000 USD) to 500,000 Argentinian pesos (approximately USD 55,000). 
 
For potato seeds the maximum financing per hectare per one single applicant, increased from 30,000 Argentinian pesos (approximately 3,300 USD) to 40,000Argentinian pesos (approximately 4,400 USD). Furthermore, the maximum number of hectares to be financed for this specific product, was announced to be 10.
 
For combustibles for frosts (fuel frosts) the maximal financing amount was established to be 300,000 Argentinian Pesos (approximately USD 33,000).
 
Mendoza is the second largest vegetable production region in Argentina. In the context of potatoes, Mendoza is one of the few Argentinian regions that has a protected area for the production of certified potato seeds in the department of Malargüe.
 
The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets, and from foreign subsidiaries.

AFFECTED SECTORS