The measure seeks to expand the number of players in the system of instrument guarantees offered by the market. It is hoped that this will result in a significant reduction in financing costs for small and medium-sized companies.
The National Securities Commission (CNV) expanded access to the Small and Medium Enterprises (SMEs) to the capital market, thus facilitating their long-term financing. This objective is achieved by incorporating new actors into the system of guarantees of instruments offered by the market, according to the official text.
Thus, through the General Resolution 1013/2024 Published this Friday in the Official Gazette, the market regulator modified the list of entities that can act as guarantors of negotiable securities with public offering, incorporating the Multilateral Credit Organizations (OMC). “These organizations, given their financial solidity and international character, become a new option to support debt issues by SMEs,” the document reads.
For OMCs, a simplified procedure for registration in the register of qualified entities is established. This is justified by the nature and level of supervision that already exists over these bodies at the international level.
He added that the inclusion of OMCs strengthens confidence in the capital market, as they are supported by international credit institutions.
Investment promotion
He argues that by facilitating access to financing, this measure seeks to encourage investment and economic development. Therefore, he hopes that it will have an economic impact, since with a greater number of guarantors, the supply of financial instruments on the market is expected to increase, which could translate into greater liquidity.
The bank also expects financing costs to fall as competition between different guarantee entities could lead to a reduction in financing costs for SMEs.
Finally, he points out that SMEs will have access to a wider range of financing options, which will allow them to choose the one that best suits their needs and that the incorporation of OMCs contributes to consolidating the Argentine capital market and integrating it into international markets.
Source: Ambito
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