ANNOUNCEMENT 10 Aug 2014

In August 2014, the government of Argentina announced a change in private-sector financial support.

NUMBER OF INTERVENTIONS

1

  • 0 harmful
  • 1 neutral
  • 0 liberalising
Inception date: 10 Aug 2014 | Removal date: open ended
Still in force

State loan

On 10 August 2014, the government of Argentina announced the creation of the Fund for Economic Development (FONDEAR) with a budget of 10 billion Argentinian Pesos (ca. USD 1 billion).
The core scope of this fund is to support economic projects that:

  1. generate production chains;
  2. develop an efficient production scale;
  3. promote employment growth;
  4. improve competitiveness and increase productive investment and/or improve the national trade balance through boosting exports or substituting imports. 

With regards to this elaborated Fund, it is important to denote that it prioritizes the following sectors that are deemed of a relatively high strategic importance for Argentina:

  1. Automotive Sector (incl. the automotive parts);
  2. Capital Goods and their parts;
  3. Metal Supplies with a wide range of applications;
  4. Drugs;
  5. Petrochemicals and Plastics;
  6. Electronics andOil and Gas. 

Lastly, it is important denoting that the eligible costs of the economic projects that this Fund aims to finance are costs related with the financing of :

  1. Machinery and / or parts of machinery;
  2. Equiptment;
  3. Approvals and certifications,
  4. Raw Materials,
  5. Semi-finished products ;
  6. Construction, alteration and edilicias and / or facilities in industrial plants or distribution centers ( incl.architectural changes for logisticspurposes); 
  7. pre-investment studies and analysis for project support.

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

 
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AFFECTED PRODUCTS

 
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