The modifications are justified by the need to adapt the regulatory framework of the SGR to the current economic changes that affect the country.
In general, the modifications introduced by the Secretariat of Small and Medium Enterprises of the Ministry of Economy are intended to facilitate access to credit for the country’s MSMEs.
Through Provision 491/2023 of the Undersecretariat of the Small and Medium Enterprisefrom the Ministry of Economy, published this Monday in the Official bulletinchanges were incorporated in relation to the contributions of the protective partners, the authorizations to increase the risk fund and the investments of the risk fund of the Reciprocal Guarantee Companies (SGR).
In the official text, the Secretariat of Small and Medium Enterprises modified the regulations applicable to SGR. The modifications are related to the following aspects:
- Contributions from protective partners: The adequacy in real terms of the minimum Computable Risk Fund required for each of the SGR is incorporated, expressing this Risk Fund as a fixed amount nominated in Argentine pesos given the Reference Stabilization Coefficient (CER) – Law No. 25,827.
- Risk fund increase authorizations: A transitional provision is established that allows SGRs that have already requested and obtained an increase in the Risk Fund, request in the second request for an increase in the Risk Fund of the year and until December 31, 2023an additional increase.
- Venture fund investments: The transitional provision that limited the Risk Fund’s investments in instruments denominated in foreign currency is repealed.
The modifications are justified by the need to adapt the regulatory framework of the SGR to the current economic changes that affect the country. In particular, the repeal of the transitional provision that limited the Risk Fund’s investments in instruments denominated in foreign currency responds to the improvement in the economic context and the need to facilitate access to credit for MSMEs.
The modifications in each of the aspects:
Contributions from protective partners
- Modification: The adequacy in real terms of the Computable Risk Fund minimum required for each of the SGRs, expressing that Risk Fund as a fixed amount nominated in Argentine pesos given the Reference Stabilization Coefficient (CER) – Law No. 25,827.
- Justification: The modification is intended to reflect the effect of inflation on the value of the Computable Risk Fund.
The GDU is the lien on the debt in dollars. The minimum amount of Computable Risk Fund required to be exempt from the GDU It’s $1 billion.. With the transitional provision, this amount is updated based on the variation in the CER.
This change is intended to facilitate compliance with the Computable Risk Fund requirement for the SGRsince the amount is updated based on inflation.
Risk fund increase authorizations
- Modification: A transitional provision is established that allows SGRs that have already requested and obtained an increase in the Risk Fund, to request an additional increase in the second request for an increase in the Risk Fund of the year and until December 31, 2023.
- Justification: The purpose of the modification is to compensate the SGRs that made a first request for an increase in the Risk Fund before the entry into force of the transitional provision that allows a second increase in the same year.
This provision is intended compensate the SGRs that had already requested an increase in the Risk Fund before the entry into force of the Provision, which increased the maximum amount of the Risk Fund increase from $1,000 million to $2,000 million.
Venture fund investments
The transitional provision that established that the SGR could invest up to 10% of its Risk Fund in instruments denominated in foreign currency was eliminated.
This provision was intended to accompany the policies implemented by the Central Bank (BCRA) and the National Securities Commission (CNV) to restrict access to foreign currency.
Removal of this provision aims to facilitate access to credit for MSMEswho can obtain better financing conditions whether the SGRs can invest in instruments denominated in foreign currency.
- Modification: The transitional provision that limited the Risk Fund’s investments in instruments denominated in foreign currency is repealed.
- Justification: The repeal responds to the improvement in the economic context and the need to facilitate access to credit for MSMEs.
In general, the modifications introduced by the Secretariat of Small and Medium Enterprises of the Ministry of Economy are intended to facilitate access to credit for the country’s MSMEs.
Source: Ambito
