Economy | Argentina
The Ministry of Productive Development and the Banco de la Nación Argentina launched a financing line with a discounted interest rate for the purchase of medium and long-distance buses manufactured in the country. The objective of the line is to accompany the reactivation of companies that offer transport and tourism services, and to further contribute to strengthening the local bus manufacturing industry.
The line for the renewal of the medium and long-distance bus fleet will offer credits of up to $50 million for small and medium-sized companies (up to USD500,000 per company) and a maximum of $250 million for large companies (2.5 million dollars per company), with a payment term of 36 months, a 6-month grace period and a discounted interest rate of 22% for SMEs and 24% for large companies.
The discounted interest rate seeks to improve access and credit conditions for small and medium-sized companies, so that they can finance their investment and working capital needs at competitive interest rates. The Secretariat of Entrepreneurs and SMEs awards credit quotas to Financial Entities through bids or specific agreements.
Entrepreneurs can process the credit in any of the banks participating in the operation, who carry out the credit analysis of the company and in case of qualifying as a credit subject, they grant loans at a discounted rate, which allows them a reduction of points in accordance with the financial conditions of the line. It is practically the same operating model that development entities such as Bancóldex or the BNDES of Brazil apply in Colombia.
The measure is carried out thanks to the contribution of the Banco de la Nación Argentina and the Ministry of Productive Development through the National Fund for Productive Development (FONDEP), which accompanies the financing by subsidizing the rate provided by the financial entity. The tool seeks to boost the production of the national manufacturers of bodies of these buses, and update the fleet of this type of vehicles.
Argentine SMEs, manufacturers of medium and long-distance bus bodies, are among the sectors most affected during the economic crisis that unleashed the coronavirus pandemic. These activities, which have begun to recover thanks to the progress of the vaccination campaign and the launch of initiatives such as the Pre-Trip, are the main demanders of medium and long-distance buses.
Given the growth in tourist activity and the aging of the bus fleet during the last two years, the financing line will help boost the production of the national manufacturers of these bus bodies, and update the fleet of this type of vehicles.
Ministry of Productive Development in Argentina