The Ministry of Industry will be the enforcement authority of FOGAR: what it is about

The Ministry of Industry will be the enforcement authority of FOGAR: what it is about

The Ministry of Economy, headed by Luis Caputo, delegated to the Secretariat of Industry and Productive Development the exercise of the functions of the Implementation Authority of the Argentine Guarantee Fund (FoGAr).

The Argentine Guarantee Fund (FOGAR) is a national public trust whose objective is the financial inclusion of SMEs and entrepreneurs. To this end, it provides guarantees as a tool to promote and improve access to financing.

How FOGAR is financed

FOGAR is funded by funds from the National State. In the pandemic crisis, it was used as an anti-crisis instrument in policies such as Zero Rate Credits for Monotributistas and Self-Employed, ATP Credits and PyMEPlus. In 2021, the million guarantees granted were exceeded.

Although the final beneficiaries are SMEs and entrepreneurs, unlike other guarantee funds, FOGAR is a second-tier fund that works through financial entities that grant loans.

FOGAR also supports the participation of MSMEs in el Capital Market through guarantees for the issuance of Negotiable Obligations in conjunction with the National Securities Commission (CNV).

FOGAR’s daily work involves very close coordination with the Banking Chambers (ADEBA, ABAPPRA, ABE, ABA), the Federal Network of Public Guarantee Funds (FONRED) and the Argentine Chamber of Companies and Guarantee Funds (CASFOG).

At the national level, FOGAR chairs the Federal Network of Public Guarantee Funds (FONRED), a space made up of the provinces and is an active partner of the Ibero-American Guarantee Network (REGAR), an international level where experiences are shared that enrich and provide feedback. initiatives.

What FOGAR is in charge of

FOGAR provides guarantees through various mechanisms in which individuals or companies MSMEs They receive the benefit automatically, without any particular analysis by the fund, which provides great agility:

  • Guarantees with partial coverage
  • Guarantees for specific lines
  • Guarantees for emergency lines
  • Reguarantees to mutual guarantee companies (SGRs) and provincial guarantee funds
  • Guarantees in the capital market (CNV)

In all cases, where for some reasonthe beneficiaries could not comply with their obligationsFOGAR covers the operation for guaranteed percentage. The regularization of the situation (default of the beneficiary) must be managed with the same entities where the operations originated (these entities manage the recovery on behalf of and by order of FOGAR).

Source: Ambito

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