Active Mixed AidData Chinese Aid

ICBC extends line of credit to Argentinian SMEs to pre-finance working capital for exports worth $500 million pesos (Linked to Record ID#97578)

$500K USD

Funder	Industrial and Commercial Bank of China (ICBC)
Recipient Organization	Argentina Ministry of Productive Development
Country	Argentina
Start Date	Mar 12, 2021
End Date	Oct 23, 2032
Duration	4,243 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`97577`

Grant Description

ICBC extends line of credit to Argentinian SMEs to pre-finance working capital for exports worth $500 million pesos On March 12, 2021, the Argentinian Minister of Productive Development, Matías Kulfas, led the launch of the Productive Cooperation Plan with China, a comprehensive bilateral cooperation agreement through which it is expected to double the exports of Argentine SMEs to the People's Republic of China.

The plan includes specific credit lines with a rate subsidized by the National Fund for Productive Development (FONDEP) to finance exports to China.

A line of credit is in force until June 30, 2021, or until the quota is exhausted, in conjunction with Banco ICBC to pre-finance working capital for exports to China, either in pesos or in dollars.

The advance line in Argentine pesos has a total amount of $500 million and grants credits of up to $16,000,000 for first exporters and infrequent exporters, with a subsidized rate of 27% and 75% FOGAR guarantees; and credits of up to $24,000,000 for frequent exporters, with a subsidized rate of 30%.

Regarding the pre-financing line for exports in dollars, it has a total quota of $10 million for credits of up to $200,000 for first exporters and infrequent exporters, with a rate subsidized by FONDEP of 4% and a guarantee from FOGAR of 75% for first exporters and infrequent exporters; and credits of up to $300,000 for Frequent Exporters, with a rate subsidized by FONDEP of 4.5% (see Record ID#97578).

As of November 11, 2021, more than one million loans had been granted, for a total amount of more than $216,000 million.

📋 Staff Comments

1. AidData codes all pre-export finance (PXF) facilities as collateralized since they are almost always secured by (1) an assignment of rights by the producer under an ‘offtake contract’ (i.e., a sale and purchase contract between the producer and a buyer of that producer of goods or commodities), and (2) a collection account charge over a bank account into which proceeds due to the producer from the buyer of the goods or commodities under the offtake contract are credited.

📚 Sources & References

Kulfas: “Vamos a duplicar la cantidad de PyMEs argentinas que exporten a China”
Desarrollo Productivo ya otorgó un millón de créditos a PyMEs y emprendedores
Líneas de financiamiento vigentes para PyMEs
En una reunión virtual, realizaron el lanzamiento del Plan de Cooperación con China
INSTRUMENTOS DE APOYO PARA EMPRENDEDORES Y PYMES
Oferta de Financiamiento y Capacitación al Sector Foresto Industrial de la provincia de Misiones
PROGRAMAS MINISTERIO DE DESARROLLO PRODUCTIVO
Desarrollo Productivo otorgó un millón de créditos a pymes por más de $ 216.000 millones - TELAM SE 2022. Queda expresamente prohibida la utilización de este contenido sin citar la autoría de TELAM, la omisión de este requisito es violatorio del Régimen Legal de la Propiedad Intelectual
Ley 11.723. lo que habilita el reclamo de nuestros derechos por vía judicial.
OAS MSME Newsletter: (November 2021):
Se abrió la inscripción para una línea de créditos blandos Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.