In July, to avert the run on Treasury bonds in pesos, the government offered dollar-adjusted bonds, thereby managing to placate distrust. In the capital market, the trend towards a tool that allows to follow the price of the dollar was replicated.
The financial instrument is the Stock Exchange Note adjusted in foreign currency. It is not issued in dollars, but is processed at the official exchange rate. In this way, investors are covered against a devaluation risk. It constitutes an important tool to facilitate the access of SMEs to financing under competitive conditions, with terms that extend up to 3 years. According to the Argentine Stock Market (MAV), the Stock Exchange Promissory Note is an optimal tool both for the financing of working capital as well as for the financing of investment projects that focus on the growth and expansion of a company. By having a minimum term of 15 days and a maximum term of 3 years, it allows the financing of a wide range of company needs while providing predictability and better financing options.
In July, 59% of capital market financing obtained by SMEs was channeled through promissory notes and 5% through negotiation bonds, while the rest were electronic credit checks and bills.
The accelerated behavior in the capital market has as its counterpart a lower activity of companies in the financial sector. In July, the volume operated by SMEs in the banking market fell between 2% and 5% –the discount of checks, the bank overdraft and the single signature credit-, compared to June, in real terms. Despite the upward trend in interest rates, they are still below year-on-year inflation. ANDn advance $60,394 million were operated at an average annual nominal rate of 55.3%; in loans, $85,533 million at an annual nominal rate of 50.6% and in checks, $141,881 million, at an annual nominal 45%.
In the financial segment, the ADIMRA report highlights that the Financing Line for Productive Investment continued to be the main tool used to channel productive credit. “At the end of July, the loans granted under the LFIP accumulated disbursements of approximately $2.693 billion since its launch. 85% of the total disbursed responds to the financing of working capital, the remaining 15% to investment projects,” it was reported.
Source: Ambito
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