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The increase in the BCRA rate raised the quotas of the SME moratorium

The increase in the BCRA rate raised the quotas of the SME moratorium

Since April, monthly payments are updated at the Badlar rate, which is the one that banks apply to wholesale fixed terms. It is currently from 7.3% monthly and until now the SMEs and neighborhood clubs that had entered into a payment plan paid with an adjustment of only 1.5%.

Faced with it, The Argentine Chamber of Commerce and Services (CAC) sent a note to the Minister of Economy, Sergio Massa, in which he asks him to modify the update index through a DNU and warns about “the serious risks that Argentine SMEs run after the increase in plan fees.”

In this line, the CAC explained that the calculation to which the debts are submitted from the fourth month of the year “they are excessive for the sustenance” of the companies.

“After the recent adjustments provided by the Central Bank, the current Badlar rate is 87.5% nominal per year, implying a nominal monthly rate of 7.3%,” states the entity in the note sent to the head of the Palacio de Hacienda.

The text adds that “the fact of multiplying the rate by 4.5, when applied to the principal balance owed, determined that fees will triple or quadruple from one period to the next, becoming in many cases unpayable for micro and small businesses”.

In addition, the entity warned that “supervening non-compliance will cause the expiration of the payment plans in a short time and will subject these companies to the application of precautionary measures by the AFIP in compliance with their legal obligations, but with serious risk for business continuity and the employment of a large number of formal workers, aggravating the transfer to the informal sector of the economy”.

The CAC affirms that a good part of the “520 thousand Argentine SMEs —which represent 98% of the total companies in the country— had to resort to the Tax Relief Law during the pandemic to continue standing.

Source: Ambito

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