La Nación seeks to develop financing for SMEs

In Argentina less than 10% of SMEs have access to financing. In addition, there are serious problems in the payment chain. And in this sense "there are still some difficult months ahead," admitted the secretary of Entrepreneurs and SMEs, Mariano Mayer.

To alleviate this situation (of a sector that is key in the generation of jobs), the Ministry of Production decided to launch an initiative to improve the market for guarantees for SMEs . The idea is that businesses can improve access to credit and increase financial inclusion.

These are structural changes in the Reciprocal Guarantees System (GRS) that provide guarantees. so that companies can obtain financing through formal channels. "This measure will allow SMEs to access the guarantees in less time and at a lower cost and simplify the day-to-day operations of SGR" ensure in the directing ministry Dante Sica.

The changes are divided into two axes: firstly, higher requirements will be imposed for SGR (in terms of volume of guarantees given to SMEs), as a condition for tax relief and the making investors' contributions to the system.

Procedures will also be simplified with respect to the mechanism for obtaining approval by an SME, as in the day-to-day operation of the RGPs.

] According to the estimates of the Ministry of Production the number of SMEs benefiting from current guarantees would increase from 14 500 in 2018 to 50 000 in 2023 . If we add to this the impact that the Argentine Guarantee Fund (Fogar) would generate, the number of SMEs benefiting from current guarantees could reach 100,000 in 2023 believe the authorities. 19659008]

In contrast, the RMS undertakes to allocate part of their Risk Fund (resources guaranteeing the guarantees issued) to the purchase of financing instruments of the SMEs. This percentage, which will not exceed 15% will be allocated to SME mutual funds, SGR-guaranteed deferred payment checks, promissory notes issued by SGR, marketable bonds issued by SMEs and financial trusts. SMEs. 19659003] In the presentation of the changes, the secretary of entrepreneurs and SMEs Mariano Mayer, explains: "We seek to accelerate the granting of guarantees with less bureaucracy and expenditure, both for SMEs who already have access to funding to include those who still have not, who are the vast majority. "