ICBC extends line of credit to Argentinian SMEs to pre-finance working capital for exports worth USD $10 million (Linked to Project ID #97577)

On March 12, 2021, the Argentinian Minister of Productive Development, Matías Kulfas, led the launch of the Productive Cooperation Plan with China, a comprehensive bilateral cooperation agreement through which it is expected to double the exports of Argentine SMEs to the People's Republic of China. It includes specific credit lines with a rate subsidized by the National Fund for Productive Development (FONDEP) to finance exports to China. A line of credit is in force until June 30, 2021, or until the quota is exhausted, in conjunction with Banco ICBC to pre-finance working capital for exports to China, either in pesos or in dollars. The pre-financing line for exports in dollars has a total quota of USD $10 million for credits of up to USD $200,000 for first exporters and infrequent exporters, with a rate subsidized by FONDEP of 4% and a guarantee from FOGAR of 75% for first exporters and infrequent exporters; and credits of up to USD $ 300,000 for Frequent Exporters, with a rate subsidized by FONDEP of 4.5%. Regarding the advance pre-financing line in Argentine pesos, it has a total amount of $500 million and grants credits of up to $16,000,000 for first exporters and infrequent exporters, with a subsidized rate of 27% and 75% FOGAR guarantees; and credits of up to $24,000,000 for frequent exporters, with a subsidized rate of 30% (see Project ID #97577). As of November 11, 2021, more than one million loans had been granted, for a total amount of more than $216,000 million.

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