With a challenging end to the year for SMEs, the Government announced the extension of the installment program for six months, although with modifications. What will be the impact of these changes?
As Ámbito anticipated, the Government extended the validity of the program “Simple Fee” until June 30, 2025 and make adjustments to its conditions to adapt it to the current economic and financial situation, seeking to avoid distortions in the credit market and protect consumers.
It also modified the program regulations. It did so through Resolution 486/2024 published this Friday in the Official Gazette, which recalls the original creation of the program to promote consumption and production through term financing.
One of the main changes to the program is its exclusivity for small and medium businesses (SMEs), leaving out large businesses. The organization seeks to concentrate benefits in the interior of the country, where banking competition is more limited. And it applies “only to qualified national goods and services.”
Another key issue that emerged during the meetings with the companies was the lack of incentives for the banking sector to maintain the program. In this context, it is proposed that banks negotiate directly with businesses and brands to offer benefits to customers. Furthermore, the Secretariat highlights that more than 80% of purchases are made in a range of 3 to 6 installments, which supports the program adjustment strategy. However, a Payway report contrasts with this vision, since until September the Simple Installment options in their 9 and 12 installment versions They achieved an increase in their participation in the program.
Simple Fee
Mariano Fuchila
Products and Services Included
The detailed list of categories is extensive and includes:
- Appliances (refrigerators, washing machines, kitchens, etc.).
- Clothing, footwear, and leather goods.
- Mobile phones (4G and 5G).
- Bicycles (including electric).
- Education, books, toys, and technology.
- Tourism, cultural shows and events.
- Services such as gyms, hairdressers, and repairs.
- Construction materials and elements for home connections.
Benefits for consumers and businesses
- Offers financing options in 3 and 6 installments.
- Maintains interest rates below the market.
- Focused on national products and services provided by SMEs.
Direct Rates and Discounts: The resolution also mentions the “Direct Rates” of the program and the discounts that apply to businesses. These rates and discounts are calculated from the active pass rate and vary depending on the number of installments (3 or 6). The maximum discounts for businesses are:
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- 3 installments: 5.87%
- 6 installments: 11,16.
The program rates will be automatically updated each time the BCRA modifies the reference rate for active repo operations. The changes will become effective from the third business day after the BCRA modification.
Source: Ambito
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